A comprehensive study of Game Theory applications for smart grids, demand side management programs, and transportation networks

TL;DR

This paper reviews game theory applications in smart grids, demand side management, and transportation, emphasizing non-cooperative Stackelberg models for various power system challenges.

Contribution

It provides a comprehensive overview of game theory formulations and their specific applications in power systems and related fields.

Findings

Game theory effectively models decision-making in power systems.

Stackelberg game models help optimize transmission and reliability.

Application examples demonstrate practical benefits in energy management.

Abstract

Game theory is a powerful analytical tool for modeling decision makers strategies, behaviors and interactions. Act and decisions of a decision maker can benefit or negatively impact other decision makers interests. Game theory has been broadly used in economics, politics and engineering field. For example, game theory can model decision making procedure of different companies competing with each other to maximize their profit. Here, we present a brief introduction of game theory formulation and its applications. The focus of the chapter is non-cooperative Stackelberg game model and its applications in solving power system related problems. These applications include but not limited to; expanding transmission network, improving power system reliability, containing market power in the electricity market, solving power system dispatch, executing demand response and allocating resource in a wireless system. Finally, this chapter elaborates on solving a game theory problem through an example.