Abstract
This paper investigates distributed decision making and social mechanism design in power demand and supply networks. We capture the problem as a game with a single player called utility and multiple heterogeneous agents, where the utility corresponds to a public commission and tries to maximize social welfare and the agents correspond to distributed generators, renewables, batteries or loads and try to maximize their own individual profit. We propose a strategy for the utility to decide a price of unit power at each time instance for which the induced reactions of the agents turn out to maximize the social welfare. We also investigate strategic behaviors of multiple agents, and propose a dynamic mechanism for social system designs. Under the proposed social mechanism, the agents truthfully and voluntarily participate to the institution.
