TY - GEN
T1 - A game-theoretic analysis of pricing competition between aggregators in V2G systems
AU - Hasan, Mgm Mehedi
AU - Rahman, Mohammad Ashiqur
AU - Manshaei, Mohammad Hossein
AU - Saad, Walid
N1 - Publisher Copyright:
© 2019 IEEE.
PY - 2019/7
Y1 - 2019/7
N2 - 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.
AB - 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.
KW - Game Theory
KW - Optimal Pricing
KW - Plug-in Electric Vehicles
KW - Vehicle-to-Grid
UR - http://www.scopus.com/inward/record.url?scp=85072696840&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85072696840&partnerID=8YFLogxK
U2 - 10.1109/COMPSAC.2019.00085
DO - 10.1109/COMPSAC.2019.00085
M3 - Conference contribution
AN - SCOPUS:85072696840
T3 - Proceedings - International Computer Software and Applications Conference
SP - 549
EP - 558
BT - Proceedings - 2019 IEEE 43rd Annual Computer Software and Applications Conference, COMPSAC 2019
A2 - Getov, Vladimir
A2 - Gaudiot, Jean-Luc
A2 - Yamai, Nariyoshi
A2 - Cimato, Stelvio
A2 - Chang, Morris
A2 - Teranishi, Yuuichi
A2 - Yang, Ji-Jiang
A2 - Leong, Hong Va
A2 - Shahriar, Hossian
A2 - Takemoto, Michiharu
A2 - Towey, Dave
A2 - Takakura, Hiroki
A2 - Elci, Atilla
A2 - Takeuchi, Susumu
A2 - Puri, Satish
PB - IEEE Computer Society
T2 - 43rd IEEE Annual Computer Software and Applications Conference, COMPSAC 2019
Y2 - 15 July 2019 through 19 July 2019
ER -