Generalizing Demand Response Through Reward Bidding

Hongyao Ma, David C. Parkes, Valentin Robu

Research output: Chapter in Book/Report/Conference proceedingConference contribution

18 Citations (Scopus)
70 Downloads (Pure)


Demand-side response (DR) is emerging as a crucial technology to assure stability of modern power grids. The uncertainty about the cost agents face for reducing consumption imposes challenges in achieving reliable, coordinated response. In recent work, Ma et al. introduce DR as a mechanism design problem and solve it for a setting where an agent has a binary preparation decision and where, contingent on choosing to prepare, the probability an agent will reduce demand is fixed. We generalize this model in two ways: (i) agents have uncertainty in their costs of responding, and (ii) agents have multiple levels of eort they can exert in preparing. For both cases, the design of contingent payments now aects the probability of response. We design a new, truthful and reliable mechanism that uses a "reward-bidding" approach rather than the "penalty-bidding" approach. It has good performance when compared to natural benchmarks. The mechanism also extends to handle multiple units of demand response from each agent.
Original languageEnglish
Title of host publicationProceedings of the 16th International Conference on Autonomous Agents and Multi-Agent Systems
PublisherAssociation for Computing Machinery
Number of pages9
Publication statusPublished - 8 May 2017
Event16th International Conference on Autonomous Agents and Multi-Agent Systems - San Paulo, Brazil
Duration: 8 May 201712 May 2017


Conference16th International Conference on Autonomous Agents and Multi-Agent Systems
Abbreviated titleAAMAS 2017
CitySan Paulo


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