How peer effects influence energy consumption
This paper analyzes the impact of peer effects on electricity consumption of a network of rational, utility-maximizing users. Users derive utility from consuming electricity as well as consuming less energy than their neighbors. However, a disutility is incurred for consuming more than their neighbo...
| Main Authors: | , , , |
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| Other Authors: | |
| Format: | Article |
| Language: | English |
| Published: |
Institute of Electrical and Electronics Engineers (IEEE)
2020
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| Online Access: | https://hdl.handle.net/1721.1/128910 |
| _version_ | 1811088787144441856 |
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| author | Zhou, Datong P. Roozbehani, Mardavij Dahleh, Munther A Tomlin, Claire J. |
| author2 | Massachusetts Institute of Technology. Laboratory for Information and Decision Systems |
| author_facet | Massachusetts Institute of Technology. Laboratory for Information and Decision Systems Zhou, Datong P. Roozbehani, Mardavij Dahleh, Munther A Tomlin, Claire J. |
| author_sort | Zhou, Datong P. |
| collection | MIT |
| description | This paper analyzes the impact of peer effects on electricity consumption of a network of rational, utility-maximizing users. Users derive utility from consuming electricity as well as consuming less energy than their neighbors. However, a disutility is incurred for consuming more than their neighbors. To maximize the profit of the load-serving entity that provides electricity to such users, we develop a two-stage game-theoretic model, where the entity sets the prices in the first stage. In the second stage, consumers decide on their demand in response to the observed price set in the first stage so as to maximize their utility. To this end, we derive theoretical statements under which such peer effects reduce aggregate user consumption. Further, we obtain expressions for the resulting electricity consumption and profit of the load serving entity for the case of perfect price discrimination and a single price under complete information, and approximations under incomplete information. Simulations suggest that exposing only a selected subset of all users to peer effects maximizes the entity's profit. |
| first_indexed | 2024-09-23T14:07:32Z |
| format | Article |
| id | mit-1721.1/128910 |
| institution | Massachusetts Institute of Technology |
| language | English |
| last_indexed | 2024-09-23T14:07:32Z |
| publishDate | 2020 |
| publisher | Institute of Electrical and Electronics Engineers (IEEE) |
| record_format | dspace |
| spelling | mit-1721.1/1289102022-09-28T18:42:25Z How peer effects influence energy consumption Zhou, Datong P. Roozbehani, Mardavij Dahleh, Munther A Tomlin, Claire J. Massachusetts Institute of Technology. Laboratory for Information and Decision Systems This paper analyzes the impact of peer effects on electricity consumption of a network of rational, utility-maximizing users. Users derive utility from consuming electricity as well as consuming less energy than their neighbors. However, a disutility is incurred for consuming more than their neighbors. To maximize the profit of the load-serving entity that provides electricity to such users, we develop a two-stage game-theoretic model, where the entity sets the prices in the first stage. In the second stage, consumers decide on their demand in response to the observed price set in the first stage so as to maximize their utility. To this end, we derive theoretical statements under which such peer effects reduce aggregate user consumption. Further, we obtain expressions for the resulting electricity consumption and profit of the load serving entity for the case of perfect price discrimination and a single price under complete information, and approximations under incomplete information. Simulations suggest that exposing only a selected subset of all users to peer effects maximizes the entity's profit. 2020-12-23T16:49:42Z 2020-12-23T16:49:42Z 2018-01 2017-12 2019-05-14T16:47:58Z Article http://purl.org/eprint/type/ConferencePaper 9781509028733 https://hdl.handle.net/1721.1/128910 Zhou, Datong P. et al. "How peer effects influence energy consumption." IEEE 56th Annual Conference on Decision and Control (CDC), December 2017, Melbourne, Australia, Institute of Electrical and Electronics Engineers, January 2018. © 2017 IEEE en http://dx.doi.org/10.1109/cdc.2017.8264229 IEEE 56th Annual Conference on Decision and Control (CDC) Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf Institute of Electrical and Electronics Engineers (IEEE) arXiv |
| spellingShingle | Zhou, Datong P. Roozbehani, Mardavij Dahleh, Munther A Tomlin, Claire J. How peer effects influence energy consumption |
| title | How peer effects influence energy consumption |
| title_full | How peer effects influence energy consumption |
| title_fullStr | How peer effects influence energy consumption |
| title_full_unstemmed | How peer effects influence energy consumption |
| title_short | How peer effects influence energy consumption |
| title_sort | how peer effects influence energy consumption |
| url | https://hdl.handle.net/1721.1/128910 |
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