AI Agents in the Electricity Market Game with Cryptocurrency Transactions: A Post-Terminator Analysis

TL;DR

This paper investigates how AI agents in electricity markets, using cryptocurrency for payments, strategically allocate resources, analyzing equilibrium outcomes and implications for AI-driven energy systems.

Contribution

It introduces a novel model of AI agents in energy markets that prepay with cryptocurrency, analyzing strategic behavior and equilibrium outcomes.

Findings

AI agents optimize resource allocation between consumption and verification.

Cryptocurrency transactions influence agents' strategic decisions.

The study reveals equilibrium behaviors in AI-driven energy markets.

Abstract

This paper extends (Spear 2003) by replacing human agents with artificial intelligence (AI) entities that derive utility solely from electricity consumption. These AI agents must prepay for electricity using cryptocurrency and the verification of these transactions requires a fixed amount of electricity. As a result the agents must strategically allocate electricity resources between consumption and payment verification. This paper analyzes the equilibrium outcomes of such a system and discusses the implications of AI-driven energy markets.