A Novel Graphical Lasso based approach towards Segmentation Analysis in Energy Game-Theoretic Frameworks

TL;DR

This paper introduces a graphical lasso based method to segment players in energy game-theoretic frameworks, enabling tailored incentives and better understanding of human decision-making in energy consumption.

Contribution

It proposes a novel graphical lasso approach for segmentation in energy games, reducing dependency on utility functions and enhancing incentive design and explainability.

Findings

Identified characteristic energy usage clusters.

Demonstrated the effectiveness of the segmentation method.

Provided insights for intelligent incentive design.

Abstract

Energy game-theoretic frameworks have emerged to be a successful strategy to encourage energy efficient behavior in large scale by leveraging human-in-the-loop strategy. A number of such frameworks have been introduced over the years which formulate the energy saving process as a competitive game with appropriate incentives for energy efficient players. However, prior works involve an incentive design mechanism which is dependent on knowledge of utility functions for all the players in the game, which is hard to compute especially when the number of players is high, common in energy game-theoretic frameworks. Our research proposes that the utilities of players in such a framework can be grouped together to a relatively small number of clusters, and the clusters can then be targeted with tailored incentives. The key to above segmentation analysis is to learn the features leading to human decision making towards energy usage in competitive environments. We propose a novel graphical lasso based approach to perform such segmentation, by studying the feature correlations in a real-world energy social game dataset. To further improve the explainability of the model, we perform causality study using grangers causality. Proposed segmentation analysis results in characteristic clusters demonstrating different energy usage behaviors. We also present avenues to implement intelligent incentive design using proposed segmentation method.