A multi-agent system for households response to dynamic pricing

Demand response behaviors of retailers are very important for dynamic pricing mechanism design and analysis. This paper presents a multi-agent system to simulate the household response to dynamic pricing. In each household, the best activities under real time pricing for every major electricity devices with their own characteristics and flexibilities are formulated as mixed integrated linear programming problems. Then a Markov gaming framework is used to analysis the response behavior of each household. Some study cases show the households response behavior in different situations.