On Real-Time Pricing for Strategic Agents
Cedric Langbort, University of Illinois at Urbana-Champaign
Abstract:
We revisit the problem of real-time pricing for load-frequency balancing, originally introduced by F. Schweppe and co-authors. In contrast with the original model, we do not assume that the participants are truthful or compliant, and the issue of incentivizing truth-telling thus arises naturally. We consider the possibility of combining tools from mechanism design and robust control theory to create the required real-time pricing functions, and discuss some possible further extensions and applications to MPC.