A Study on the Potential of Dynamic Pricing Models in the Japanese Gas Market

Abstract

Gas and electric power are one of the essential social infrastructure for social and economicactivities. The purpose of this research is to construct a Real Time Pricing (RTP) model suitable for thedistribution and sales market of LP gas in Japan by utilizing the Dynamic Pricing Model. As a method ofpredicting demand, we would like to first create a model of power consumption and then apply it to LPgas. Analysis of customers' electric power and gas consumption can infer from what standpoint they wereconsuming public goods. Through this, we would like to offer users' reasonable prices to expand theirchoices and contribute to the efficient use of social resources.