A game-theoretic analysis of pricing competition between aggregators in V2G systems

Mgm Mehedi Hasan, Mohammad Ashiqur Rahman, Mohammad Hossein Manshaei, Walid Saad

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

3 Scopus citations

Abstract

While the Plug-in Electric Vehicles (PEVs) are gaining popularity, Vehicle-to-Grid (V2G) technology is becoming a reality. In V2G, a PEV provides energy as well as consumes it. Since the battery of a PEV can store a small amount of electric power, a large number of PEVs must be combined to offer useful services to the grid. However, these vehicles must be managed to provide controlled services according to the need of the grid leading to the introduction of an aggregator. This work assumes a system of multiple aggregators to which a PEV can choose to subscribe. An aggregator charges its subscribers for the V2G services. To maximize their profits, the aggregators vie with each other to get the market share. This competition dictates the prices and it is crucial for each competitor to choose an optimal price. The competition among aggregators is influenced by several factors. In this work, we analyze this competition by modeling the problem as a sequential game, in particular, using the Stackelberg Leadership Model. Solving the model provides the optimal prices. We also analyze the same problem by modeling it as a simultaneous game using the Cournot Competition Model and compare the game results with that of the Stackelberg game. We conduct an extensive evaluation of the game results to demonstrate the influence of different factors on optimal behavior.

Original languageEnglish (US)
Title of host publicationProceedings - 2019 IEEE 43rd Annual Computer Software and Applications Conference, COMPSAC 2019
EditorsVladimir Getov, Jean-Luc Gaudiot, Nariyoshi Yamai, Stelvio Cimato, Morris Chang, Yuuichi Teranishi, Ji-Jiang Yang, Hong Va Leong, Hossian Shahriar, Michiharu Takemoto, Dave Towey, Hiroki Takakura, Atilla Elci, Susumu Takeuchi, Satish Puri
PublisherIEEE Computer Society
Pages549-558
Number of pages10
ISBN (Electronic)9781728126074
DOIs
StatePublished - Jul 2019
Externally publishedYes
Event43rd IEEE Annual Computer Software and Applications Conference, COMPSAC 2019 - Milwaukee, United States
Duration: Jul 15 2019Jul 19 2019

Publication series

NameProceedings - International Computer Software and Applications Conference
Volume1
ISSN (Print)0730-3157

Conference

Conference43rd IEEE Annual Computer Software and Applications Conference, COMPSAC 2019
Country/TerritoryUnited States
CityMilwaukee
Period7/15/197/19/19

Keywords

  • Game Theory
  • Optimal Pricing
  • Plug-in Electric Vehicles
  • Vehicle-to-Grid

ASJC Scopus subject areas

  • Software
  • Computer Science Applications

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