IDEAS home Printed from https://ideas.repec.org/a/bpj/jossai/v3y2015i4p348-356n5.html

Real-Time Pricing Decision Based on Leader-Follower Game in Smart Grid

Author

Listed:
  • Dai Yeming

    (School of Management, University of Shanghai for Science and Technology, Shanghai200093, China;)

  • Gao Yan

    (School of Management, University of Shanghai for Science and Technology, Shanghai200093, China;)

Abstract

The real-time pricing plays an important role in demand-side management for smart grid. In this paper, we study real-time pricing strategy of electricity retailers by means of game theory in smart grid. The retailers are in the game situation where there is one leader with multi-followers. We propose a real-time electricity demand function and analyze the interactions between the retailers, then obtain its equilibrium solution. The analysis and simulation results of the equilibrium solution show the effectiveness of the proposed method.

Suggested Citation

  • Dai Yeming & Gao Yan, 2015. "Real-Time Pricing Decision Based on Leader-Follower Game in Smart Grid," Journal of Systems Science and Information, De Gruyter, vol. 3(4), pages 348-356, August.
    • Handle: RePEc:bpj:jossai:v:3:y:2015:i:4:p:348-356:n:5
    DOI: 10.1515/JSSI-2015-0348
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/JSSI-2015-0348
    Download Restriction: no
    File URL: https://libkey.io/10.1515/JSSI-2015-0348?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. van Damme, Eric & Hurkens, Sjaak, 1999. "Endogenous Stackelberg Leadership," Games and Economic Behavior, Elsevier, vol. 28(1), pages 105-129, July.
    2. van Damme, Eric & Hurkens, Sjaak, 1999. "Endogenous Stackelberg Leadership," Games and Economic Behavior, Elsevier, vol. 28(1), pages 105-129, July.
    3. Stephen P. Holland & Erin T. Mansur, 2008. "Is Real-Time Pricing Green? The Environmental Impacts of Electricity Demand Variance," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 550-561, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. MartI´nez-Sánchez, Francisco, 2010. "Avoiding commercial piracy," Information Economics and Policy, Elsevier, vol. 22(4), pages 398-408, December.
    2. Guth, Werner & Ritzberger, Klaus & van Damme, Eric, 2004. "On the Nash bargaining solution with noise," European Economic Review, Elsevier, vol. 48(3), pages 697-713, June.
    3. Matthew Beacham, 2012. "The effect of Stackelberg cost reductions on spatial competition with heterogeneous firms," Discussion Papers 12/14, Department of Economics, University of York.
    4. Andrea Gallice, 2008. "Preempting versus Postponing: the Stealing Game," ICER Working Papers 02-2008, ICER - International Centre for Economic Research.
    5. Matsui, Kenji, 2016. "Asymmetric product distribution between symmetric manufacturers using dual-channel supply chains," European Journal of Operational Research, Elsevier, vol. 248(2), pages 646-657.
    6. Qiu, Hong & Zhu, Nan & Peng, Qiyuan, 2021. "Can a small fish become a big fish? Modeling leader-generating mergers in a Stackelberg market," Finance Research Letters, Elsevier, vol. 38(C).
    7. Attila Tasnádi, 2016. "Endogenous timing of moves in Bertrand–Edgeworth triopolies," International Journal of Economic Theory, The International Society for Economic Theory, vol. 12(4), pages 317-334, December.
    8. Chen, Jing & Chen, Bintong & Li, Wei, 2018. "Who should be pricing leader in the presence of customer returns?," European Journal of Operational Research, Elsevier, vol. 265(2), pages 735-747.
    9. Niu, Baozhuang & Wang, Yulan & Guo, Pengfei, 2015. "Equilibrium pricing sequence in a co-opetitive supply chain with the ODM as a downstream rival of its OEM," Omega, Elsevier, vol. 57(PB), pages 249-270.
    10. Jan Zouhar & Martina Zouharova, 2020. "Stackelberg versus Cournot duopoly with asymmetric costs: primary markups, entry deterrence, and a comparison of social welfare and industry profits," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(1), pages 89-96, April.
    11. Miguel Fonseca & Wieland Müller & Hans-Theo Normann, 2006. "Endogenous timing in duopoly: experimental evidence," International Journal of Game Theory, Springer;Game Theory Society, vol. 34(3), pages 443-456, October.
    12. Zhou, J., 2007. "In Litigation : How Far do the “Haves” Come Out Ahead," Other publications TiSEM 84767819-ad3f-431f-a39a-6, Tilburg University, School of Economics and Management.
    13. Santos-Pinto, Luís, 2008. "Making sense of the experimental evidence on endogenous timing in duopoly markets," Journal of Economic Behavior & Organization, Elsevier, vol. 68(3-4), pages 657-666, December.
    14. Koethenbuerger, Marko, 2011. "How do local governments decide on public policy in fiscal federalism? Tax vs. expenditure optimization," Journal of Public Economics, Elsevier, vol. 95(11), pages 1516-1522.
    15. Guth, Werner & Muller, Wieland & Potters, Jan, 2006. "Endogenous preemption on both sides of a market," Economics Letters, Elsevier, vol. 93(1), pages 126-131, October.
    16. Zhou, J., 2007. "In Litigation : How Far do the “Haves” Come Out Ahead," Discussion Paper 2007-10, Tilburg University, Center for Economic Research.
    17. Huck, Steffen & Muller, Wieland & Normann, Hans-Theo, 2002. "To Commit or Not to Commit: Endogenous Timing in Experimental Duopoly Markets," Games and Economic Behavior, Elsevier, vol. 38(2), pages 240-264, February.
    18. Hoffmann, Magnus & Rota-Graziosi, Grégoire, 2012. "Endogenous timing in general rent-seeking and conflict models," Games and Economic Behavior, Elsevier, vol. 75(1), pages 168-184.
    19. Matthias Blonski & Giancarlo Spagnolo, 2015. "Prisoners’ other Dilemma," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(1), pages 61-81, February.
    20. Maja Barac & Rafael Moner‐Colonques, 2022. "Leadership in internationalization strategies," Manchester School, University of Manchester, vol. 90(3), pages 293-318, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:jossai:v:3:y:2015:i:4:p:348-356:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.