This paper presents a novel approach to dynamic pricing and distributed energy management in virtual power plant(VPP)networks using multi-agent reinforcement learning(MARL).As the energy landscape evolves towards grea...This paper presents a novel approach to dynamic pricing and distributed energy management in virtual power plant(VPP)networks using multi-agent reinforcement learning(MARL).As the energy landscape evolves towards greater decentralization and renewable integration,traditional optimization methods struggle to address the inherent complexities and uncertainties.Our proposed MARL framework enables adaptive,decentralized decision-making for both the distribution system operator and individual VPPs,optimizing economic efficiency while maintaining grid stability.We formulate the problem as a Markov decision process and develop a custom MARL algorithm that leverages actor-critic architectures and experience replay.Extensive simulations across diverse scenarios demonstrate that our approach consistently outperforms baseline methods,including Stackelberg game models and model predictive control,achieving an 18.73%reduction in costs and a 22.46%increase in VPP profits.The MARL framework shows particular strength in scenarios with high renewable energy penetration,where it improves system performance by 11.95%compared with traditional methods.Furthermore,our approach demonstrates superior adaptability to unexpected events and mis-predictions,highlighting its potential for real-world implementation.展开更多
A dynamic pricing model was established based on forecasting the demand for container handling of a specific shipping company to maximize terminal profits to solve terminal handling charges under the changing market e...A dynamic pricing model was established based on forecasting the demand for container handling of a specific shipping company to maximize terminal profits to solve terminal handling charges under the changing market environment.It assumes that container handling demand depends on the price and the unknown parameters in the demand model.The maximum quasi-likelihood estimation(MQLE)method is used to estimate the unknown parameters.Then an adaptive dynamic pricing policy algorithm is proposed.At the beginning of each period,through dynamic pricing,determining the optimal price relative to the estimation value of the current parameter and attach a constraint of differential price decision.Meanwhile,the accuracy of demand estimation and the optimality of price decisions are balanced.Finally,a case study is given based on the real data of Shanghai port.The results show that this pricing policy can make the handling price converge to the stable price and significantly increase this shipping company’s handling profit compared with the original“contractual pricing”mechanism.展开更多
The discrete time model for a single link of Diffserv is considered in this paper. A novel algorithm is proposed to improve the robustness of the existing model. It allows the link price to fluctuate slightly around t...The discrete time model for a single link of Diffserv is considered in this paper. A novel algorithm is proposed to improve the robustness of the existing model. It allows the link price to fluctuate slightly around the equilibrium price. Simulations are performed to verify the effectiveness of the algorithm. This model solves the problem that the existing model can converge only under the strict condition.展开更多
The increase in the number of shopbots users in e-commerce has triggered flexibility of sellers in their pricing strategies. Sellers see the importance of automated price setting which provides efficient services to a...The increase in the number of shopbots users in e-commerce has triggered flexibility of sellers in their pricing strategies. Sellers see the importance of automated price setting which provides efficient services to a large number of buyers who are using shopbots. This paper studies the characteristic of decreasing energy with time in a continuous model of a Hopfield neural network that is the decreasing of errors in the network with respect to time. The characteristic shows that it is possible to use Hopfield neural network to get the main factor of dynamic pricing; the least variable cost, from production function principles. The least variable cost is obtained by reducing or increasing the input combination factors, and then making the comparison of the network output with the desired output, where the difference between the network output and desired output will be decreasing in the same manner as in the Hopfield neural network energy. Hopfield neural network will simplify the rapid change of prices in e-commerce during transaction that depends on the demand quantity for demand sensitive model of pricing.展开更多
In recent years,the Internet of Things(IoT)technology has been widely used in the production and sales of tropical fruits,with strong practicability and wide application prospects.The tropical fruit dynamic pricing mo...In recent years,the Internet of Things(IoT)technology has been widely used in the production and sales of tropical fruits,with strong practicability and wide application prospects.The tropical fruit dynamic pricing model based on the IoT technology can promote the healthy development of the tropical fruit industry in Hainan and ensure the income of fruit farmers.Based on IoT technology,the quality grade of tropical fruits in Hainan is obtained.According to the dynamic pricing strategy of revenue management,a dynamic pricing model based on the quality of tropical fruits and a dynamic pricing model based on consumer segmentation are established to study the dynamic pricing problem under the condition of maximum profit for tropical fruit sellers.The research results show that for different fruit quality and consumer groups,different pricing models are required for pricing,in order to get the maximum profit from tropical fruit sales.Sellers must flexibly adopt different dynamic pricing models to price tropical fruits to enhance the competitiveness of the tropical fruit industry.展开更多
In this paper,we consider the following dynamic pricing problem.Suppose the market price vt of an item arriving at time t is determined by v_(t)=θ^(T)x_(t),where x_(t)is the feature vector of that item andθis an unk...In this paper,we consider the following dynamic pricing problem.Suppose the market price vt of an item arriving at time t is determined by v_(t)=θ^(T)x_(t),where x_(t)is the feature vector of that item andθis an unknown vector parameter.The seller has to post prices without knowingθsuch that the total regret in time span T is minimized.Considering real-world scenarios in which people may negotiate prices,we propose a model called Second Chance Pricing,in which a seller has a second opportunity to post a price after the first offer is declined.Theoretical analysis shows that a second chance of pricing results in a total regret between O(lnT/nlnn+1/n)and O(n^(2)lnT),where n is the dimension of the feature space.Experiments on both synthetic data and real data demonstrate significant benefits brought about by the second chance where the regret is only 13%of that of one chance.展开更多
Time,price,and servicing are three important factors which affect the demand for any product.In a multi-period inventory model,different pricing in different periods may have a positive impact on demand.Offering disco...Time,price,and servicing are three important factors which affect the demand for any product.In a multi-period inventory model,different pricing in different periods may have a positive impact on demand.Offering discounts to customers during a shortage period is an efficient way to reduce lost sales.To address all these issues,a multi-period inventory model is developed and analyzed in this paper to obtain optimal pricing and replenishment periods where the market demand depends on price,time and service level provided by the retailer.The time horizon is fixed;the replenishment cycles are of equal length,but the shortage period may vary in different cycles.The retailer is allowed to charge different prices in different periods and provide discounts if someone places demand during a shortage period.Learning effects in holding and ordering costs are considered.Under a dynamic pricing framework,this study examines service improvement through learning and price discounts during shortages as an incentive for customers.It demonstrates that discounting indeed helps to produce more revenue when the back-order rate is low,and the service level is critical in generating demand when the stock-out period is lengthy,revealing a critical relationship between shortage periods and service level.A numerical experiment is performed to investigate the optimal policy in different situations and obtain some managerial insights.展开更多
In this paper,a bilevel optimization model of an integrated energy operator(IEO)–load aggregator(LA)is constructed to address the coordinate optimization challenge of multiple stakeholder island integrated energy sys...In this paper,a bilevel optimization model of an integrated energy operator(IEO)–load aggregator(LA)is constructed to address the coordinate optimization challenge of multiple stakeholder island integrated energy system(IIES).The upper level represents the integrated energy operator,and the lower level is the electricity-heatgas load aggregator.Owing to the benefit conflict between the upper and lower levels of the IIES,a dynamic pricing mechanism for coordinating the interests of the upper and lower levels is proposed,combined with factors such as the carbon emissions of the IIES,as well as the lower load interruption power.The price of selling energy can be dynamically adjusted to the lower LA in the mechanism,according to the information on carbon emissions and load interruption power.Mutual benefits and win-win situations are achieved between the upper and lower multistakeholders.Finally,CPLEX is used to iteratively solve the bilevel optimization model.The optimal solution is selected according to the joint optimal discrimination mechanism.Thesimulation results indicate that the sourceload coordinate operation can reduce the upper and lower operation costs.Using the proposed pricingmechanism,the carbon emissions and load interruption power of IEO-LA are reduced by 9.78%and 70.19%,respectively,and the capture power of the carbon capture equipment is improved by 36.24%.The validity of the proposed model and method is verified.展开更多
Consumers pay more and more attention to the quality of perishable roods, which is mainly affected by storage temperature. This paper presents a dynamic pricing model for perishable foods under temperature control. To...Consumers pay more and more attention to the quality of perishable roods, which is mainly affected by storage temperature. This paper presents a dynamic pricing model for perishable foods under temperature control. To maximize the total profit, the optimal price and storage temperature are obtained using Pontryagin＇s maximum principle. A static pricing model is provided to compare with the dynamic one. It is shown by a numerical example that the dynamic policy can make more revenue than the static one. Moreover, the managerial implications are analyzed and the effectiveness of the proposed method is demonstrated.展开更多
Nowadays,grid-connected renewable energy resources have widespread applications in the electricity market.However,providing household consumers with photovoltaic(PV)systems requires bilateral interfaces to exchange en...Nowadays,grid-connected renewable energy resources have widespread applications in the electricity market.However,providing household consumers with photovoltaic(PV)systems requires bilateral interfaces to exchange energy and data.In addition,residential consumers’contribution requires guaranteed privacy and secured data exchange.Dayahead dynamic pricing is one of the incentive-based demand response methods that has substantial effects on the integration of renewable energy resources with smart grids and social welfare.Different metering mechanisms of renewable energy resources such as feed-in tariffs,net metering,and net purchase and sale are important issues in power grid operation planning.In this paper,optimal condition decomposition method is used for dayahead dynamic pricing of grid-connected residential renewable energy resources under different metering mechanisms:feed-intariffs,net metering,and net purchase and sale in conjunction with carbon emission taxes.According to the stochastic nature of consumers’load and PV system products,uncertainties are considered in a two-stage decision-making process.The results demonstrate that the net metering with the satisfaction average of 68%for consumers and 32%for the investigated electric company leads to 28%total load reduction.For the case of net purchase and sale mechanism,a satisfaction average of 15%for consumers and 85%for the electric company results in 11%total load reduction.In feed-in-tariff mechanism,in spite of increased social welfare,load reduction does not take place.展开更多
The container sea-rail multimodal transport system faces complex challenges with de- mand uncertainties for joint slot allocation and dynamic pricing. The challenge is formulated as a two-stage optimal model based on ...The container sea-rail multimodal transport system faces complex challenges with de- mand uncertainties for joint slot allocation and dynamic pricing. The challenge is formulated as a two-stage optimal model based on revenue management （RM） as actual slots sale of multi-node container sea-rail multimodal transport usually includes contract sale to large shippers and free sale to scattered shippers. First stage in the model utilizes an origin-destination control approach, formulated as a stochastic integer programming equation, to settle long-term slot allocation in the contract market and empty container allocation. Second stage in the model is formulated as a stochastic nonlinear programming equation to solve a multiproduct joint dynamic pricing and inventory control problem for price settling and slot allocation in each period of free market. Considering the random nature of demand, the methods of chance constrained programming and robust optimi- zation are utilized to transform stochastic models into deterministic models. A numerical experiment is presented to verify the availability of models and solving methods. Results of considering uncertain/certain demand are compared, which show that the two-stage optimal strategy integrating slot allocation with dynamic pricing considering random de- mand is revealed to increase the revenue for multimodal transport operators （MTO） while concurrently satisfying shippers＇ demand. Research resulting from this paper will contribute to the theory and practice of container sea-rail multimodal transport revenue management and provide a scientific decision-making tool for MTO.展开更多
We study a dynamic pricing problem of a firm facing stochastic reference price effect.Randomness is incorporated in the formation of reference prices to capture either consumers’heterogeneity or exogenous factors tha...We study a dynamic pricing problem of a firm facing stochastic reference price effect.Randomness is incorporated in the formation of reference prices to capture either consumers’heterogeneity or exogenous factors that affect consumers’memory processes.We apply the stochastic optimal control theory to the problem and derive an explicit expression for the optimal pricing strategy.The explicit expression allows us to obtain the distribution of the steady-state reference price.We compare the expected steadystate reference price to the steady-state reference price in a model with deterministic reference price effect,and we find that the former one is always higher.Our numerical study shows that the two steady-state reference prices can have opposite sensitivity to the problem parameters and the relative difference between the two can be very significant.展开更多
Considering the widening of the peak-valley difference in the power grid and the difficulty of the existing fixed time-of-use electricity price mechanism in meeting the energy demand of heterogeneous users at various ...Considering the widening of the peak-valley difference in the power grid and the difficulty of the existing fixed time-of-use electricity price mechanism in meeting the energy demand of heterogeneous users at various moments or motivating users,the design of a reasonable dynamic pricing mechanism to actively engage users in demand response becomes imperative for power grid companies.For this purpose,a power grid-flexible load bilevel model is constructed based on dynamic pricing,where the leader is the dispatching center and the lower-level flexible load acts as the follower.Initially,an upper-level day-ahead dispatching model for the power grid is established,considering the lowest power grid dispatching cost as the objective function and incorporating the power grid-side constraints.Then,the lower level comprehensively considers the load characteristics of industrial load,energy storage,and data centers,and then establishes a lower-level flexible load operation model with the lowest user power-consuming cost as the objective function.Finally,the proposed method is validated using the IEEE-118 system,and the findings indicate that the dynamic pricing mechanism for peaking shaving and valley filling can effectively guide users to respond actively,thereby reducing the peak-valley difference and decreasing users’purchasing costs.展开更多
In recent years, ride-on-demand (RoD) services such as Uber and Didi are becoming increasingly popular. Different from traditional taxi services, RoD services adopt dynamic pricing mechanisms to manipulate the supply ...In recent years, ride-on-demand (RoD) services such as Uber and Didi are becoming increasingly popular. Different from traditional taxi services, RoD services adopt dynamic pricing mechanisms to manipulate the supply and demand on the road, and such mechanisms improve service capacity and quality. Seeking route recommendation has been widely studied in taxi service. In RoD services, the dynamic price is a new and accurate indicator that represents the supply and demand condition, but it is yet rarely studied in providing clues for drivers to seek for passengers. In this paper, we proposed to incorporate the impacts of dynamic prices as a key factor in recommending seeking routes to drivers. We first showed the importance and need to do that by analyzing real service data. We then designed a Markov Decision Process (MDP) model based on passenger order and car GPS trajectories datasets, and took into account dynamic prices in designing rewards. Results show that our model not only guides drivers to locations with higher prices, but also significantly improves driver revenue. Compared with things with the drivers before using the model, the maximum yield after using it can be increased to 28%.展开更多
In two cases that upstream and downstream firms have the decision power of intermediate product prices in a two-level supply chain,the dynamic pricing mechanism of intermediate products is studied.When a party who has...In two cases that upstream and downstream firms have the decision power of intermediate product prices in a two-level supply chain,the dynamic pricing mechanism of intermediate products is studied.When a party who has the decision power of pricing gives prices of intermediate products,the other side will give the supply or demand quantity of intermediate products which maximizes its own profits,then the party who decides price has two pricing strategies.One uses the matching price which meets the other party's demand or supply needs according to the prices of intermediate products in the next cycle.The other uses the convex combinations of the current price and the matching price which satisfies the other party's demand or supply as the price of the intermediate product in the next cycle.No matter which side has the decision power of intermediate product prices between upstream and downstream firms,results show that in the first pricing strategy,only in one case of the pricing of intermediate products stable;but in the second pricing strategy,both of the cases of pricing of intermediate products are stable in a certain field of combined parameters.展开更多
China＇s first interest rate hike during the last decade, aiming to cool down the seemingly overheated real estate market, had aroused more caution on housing market. This paper aims to analyze the housing price dynam...China＇s first interest rate hike during the last decade, aiming to cool down the seemingly overheated real estate market, had aroused more caution on housing market. This paper aims to analyze the housing price dynamics after an unanticipated economic shock, which was believed to have similar properties with the backward-looking expecta- tion models. The analysis of the housing price dynamics is based on the cobweb model with a simple user cost affected demand and a stock-flow supply assumption. Several nth- order delay rational difference equations are set up to illustrate the properties of housing dynamics phenomena, such as the equilibrium or oscillations, overshoot or undershoot and convergent or divergent, for a kind of heterogeneous backward-looking expectation models. The results show that demand elasticity is less than supply elasticity is not a necessary condition for the occurrence of oscillation. The housing price dynamics will vary substantially with the heterogeneous backward-looking expectation assumption and some other endogenous factors.展开更多
With the development of renewable energy technologies such as photovoltaics and wind power,it has become a research hotspot to improve the consumption rate of new energy and reduce energy costs through the deployment ...With the development of renewable energy technologies such as photovoltaics and wind power,it has become a research hotspot to improve the consumption rate of new energy and reduce energy costs through the deployment of energy storage.To solve the problem of the interests of different subjects in the operation of the energy storage power stations(ESS)and the integrated energy multi-microgrid alliance(IEMA),this paper proposes the optimization operation method of the energy storage power station and the IEMA based on the Stackelberg game.In the upper layer,ESS optimizes charging and discharging decisions through a dynamic pricing mechanism.In the lower layer,IEMA optimizes the output of various energy conversion coupled devices within the IEMA,as well as energy interaction and demand response(DR),based on the energy interaction prices provided by ESS.The results demonstrate that the optimization strategy proposed in this paper not only effectively balances the benefits of the IEMA and ESS but also enhances energy consumption rates and reduces IEMA energy costs.展开更多
Machine learning is an Artificial Intelligence (or AI) application, an idea that came into being by giving machines access to data and letting them learn by themselves. AI has been making headlines, especially since C...Machine learning is an Artificial Intelligence (or AI) application, an idea that came into being by giving machines access to data and letting them learn by themselves. AI has been making headlines, especially since ChatGPT was introduced. Malaysia has taken many significant steps to embrace and integrate the technology into various sectors. These include encouraging large companies to build AI infrastructure, creating AI training opportunities (for example, the local media reported Microsoft and Google plan to invest USD 2.2 billion and USD 2 billion, respectively, in the said activities), and, as part of AI Talent Roadmap 2024-2030, establishing AI faculty in one of its public universities (i.e., “Universiti Teknologi Malaysia”) leading the way in the integration and teaching of AI throughout the country. This article introduces several products developed by the author (for the energy and transportation industries) and recommends their improvement by incorporating Machine learning.展开更多
The increasingly large number of electric vehicles(EVs)has resulted in a growing concern for EV charging station load prediction for the purpose of comprehensively evaluating the influence of the charging load on dist...The increasingly large number of electric vehicles(EVs)has resulted in a growing concern for EV charging station load prediction for the purpose of comprehensively evaluating the influence of the charging load on distribution networks.To address this issue,an EV charging station load predictionmethod is proposed in coupled urban transportation and distribution networks.Firstly,a finer dynamic urban transportation network model is formulated considering both nodal and path resistance.Then,a finer EV power consumption model is proposed by considering the influence of traffic congestion and ambient temperature.Thirdly,the Monte Carlo method is applied to predict the distribution of EVcharging station load based on the proposed dynamic urban transportation network model and finer EV power consumption model.Moreover,a dynamic charging pricing scheme for EVs is devised based on the EV charging station load requirements and the maximum thresholds to ensure the security operation of distribution networks.Finally,the validity of the proposed dynamic urban transportation model was verified by accurately estimating five sets of test data on travel time by contrast with the BPR model.The five groups of travel time prediction results showed that the average absolute percentage errors could be improved from 32.87%to 37.21%compared to the BPR model.Additionally,the effectiveness of the proposed EV charging station load prediction method was demonstrated by four case studies in which the prediction of EV charging load was improved from27.2 to 31.49MWh by considering the influence of ambient temperature and speed on power energy consumption.展开更多
This research aims to test the housing price dynamics when considering heterogeneous boundedly rational expectations such as naive expectation, adaptive expectation and biased belief. The housing market is investigate...This research aims to test the housing price dynamics when considering heterogeneous boundedly rational expectations such as naive expectation, adaptive expectation and biased belief. The housing market is investigated as an evolutionary system with heterogeneous and competing expectations. The results show that the dynamics of the expected housing price varies substantially when heterogeneous expectations are considered together with some other endogenous factors. Simulation results explain some stylized phenomena such as equilibrium or oscillation, convergence or divergence, and over-shooting or under-shooting. Furthermore, the results suggest that variation of the proportion of groups of agents is basically dependent on the selected strategies. It also indicates that control policies should be chosen carefully in consistence with a unique real estate market during a unique period since certain parameter portfolio may increase or suppress oscillation.展开更多
基金supported by the Science and Technology Project of State Grid Sichuan Electric Power Company Chengdu Power Supply Company under Grant No.521904240005.
文摘This paper presents a novel approach to dynamic pricing and distributed energy management in virtual power plant(VPP)networks using multi-agent reinforcement learning(MARL).As the energy landscape evolves towards greater decentralization and renewable integration,traditional optimization methods struggle to address the inherent complexities and uncertainties.Our proposed MARL framework enables adaptive,decentralized decision-making for both the distribution system operator and individual VPPs,optimizing economic efficiency while maintaining grid stability.We formulate the problem as a Markov decision process and develop a custom MARL algorithm that leverages actor-critic architectures and experience replay.Extensive simulations across diverse scenarios demonstrate that our approach consistently outperforms baseline methods,including Stackelberg game models and model predictive control,achieving an 18.73%reduction in costs and a 22.46%increase in VPP profits.The MARL framework shows particular strength in scenarios with high renewable energy penetration,where it improves system performance by 11.95%compared with traditional methods.Furthermore,our approach demonstrates superior adaptability to unexpected events and mis-predictions,highlighting its potential for real-world implementation.
文摘A dynamic pricing model was established based on forecasting the demand for container handling of a specific shipping company to maximize terminal profits to solve terminal handling charges under the changing market environment.It assumes that container handling demand depends on the price and the unknown parameters in the demand model.The maximum quasi-likelihood estimation(MQLE)method is used to estimate the unknown parameters.Then an adaptive dynamic pricing policy algorithm is proposed.At the beginning of each period,through dynamic pricing,determining the optimal price relative to the estimation value of the current parameter and attach a constraint of differential price decision.Meanwhile,the accuracy of demand estimation and the optimality of price decisions are balanced.Finally,a case study is given based on the real data of Shanghai port.The results show that this pricing policy can make the handling price converge to the stable price and significantly increase this shipping company’s handling profit compared with the original“contractual pricing”mechanism.
文摘The discrete time model for a single link of Diffserv is considered in this paper. A novel algorithm is proposed to improve the robustness of the existing model. It allows the link price to fluctuate slightly around the equilibrium price. Simulations are performed to verify the effectiveness of the algorithm. This model solves the problem that the existing model can converge only under the strict condition.
文摘The increase in the number of shopbots users in e-commerce has triggered flexibility of sellers in their pricing strategies. Sellers see the importance of automated price setting which provides efficient services to a large number of buyers who are using shopbots. This paper studies the characteristic of decreasing energy with time in a continuous model of a Hopfield neural network that is the decreasing of errors in the network with respect to time. The characteristic shows that it is possible to use Hopfield neural network to get the main factor of dynamic pricing; the least variable cost, from production function principles. The least variable cost is obtained by reducing or increasing the input combination factors, and then making the comparison of the network output with the desired output, where the difference between the network output and desired output will be decreasing in the same manner as in the Hopfield neural network energy. Hopfield neural network will simplify the rapid change of prices in e-commerce during transaction that depends on the demand quantity for demand sensitive model of pricing.
基金Central Public-interest Scientific Institution Basal Research Fund for Chinese Academy of Tropical Agricultural Sciences(1630062019003,19CXTD-31)Youth Foundation of Natural Science Foundation of Hainan Province(719QN282).
文摘In recent years,the Internet of Things(IoT)technology has been widely used in the production and sales of tropical fruits,with strong practicability and wide application prospects.The tropical fruit dynamic pricing model based on the IoT technology can promote the healthy development of the tropical fruit industry in Hainan and ensure the income of fruit farmers.Based on IoT technology,the quality grade of tropical fruits in Hainan is obtained.According to the dynamic pricing strategy of revenue management,a dynamic pricing model based on the quality of tropical fruits and a dynamic pricing model based on consumer segmentation are established to study the dynamic pricing problem under the condition of maximum profit for tropical fruit sellers.The research results show that for different fruit quality and consumer groups,different pricing models are required for pricing,in order to get the maximum profit from tropical fruit sales.Sellers must flexibly adopt different dynamic pricing models to price tropical fruits to enhance the competitiveness of the tropical fruit industry.
基金supported by the National Natural Science Foundation of China(No.U20A2068).
文摘In this paper,we consider the following dynamic pricing problem.Suppose the market price vt of an item arriving at time t is determined by v_(t)=θ^(T)x_(t),where x_(t)is the feature vector of that item andθis an unknown vector parameter.The seller has to post prices without knowingθsuch that the total regret in time span T is minimized.Considering real-world scenarios in which people may negotiate prices,we propose a model called Second Chance Pricing,in which a seller has a second opportunity to post a price after the first offer is declined.Theoretical analysis shows that a second chance of pricing results in a total regret between O(lnT/nlnn+1/n)and O(n^(2)lnT),where n is the dimension of the feature space.Experiments on both synthetic data and real data demonstrate significant benefits brought about by the second chance where the regret is only 13%of that of one chance.
基金supported by the Council of Scientific and Industrial Research,India.
文摘Time,price,and servicing are three important factors which affect the demand for any product.In a multi-period inventory model,different pricing in different periods may have a positive impact on demand.Offering discounts to customers during a shortage period is an efficient way to reduce lost sales.To address all these issues,a multi-period inventory model is developed and analyzed in this paper to obtain optimal pricing and replenishment periods where the market demand depends on price,time and service level provided by the retailer.The time horizon is fixed;the replenishment cycles are of equal length,but the shortage period may vary in different cycles.The retailer is allowed to charge different prices in different periods and provide discounts if someone places demand during a shortage period.Learning effects in holding and ordering costs are considered.Under a dynamic pricing framework,this study examines service improvement through learning and price discounts during shortages as an incentive for customers.It demonstrates that discounting indeed helps to produce more revenue when the back-order rate is low,and the service level is critical in generating demand when the stock-out period is lengthy,revealing a critical relationship between shortage periods and service level.A numerical experiment is performed to investigate the optimal policy in different situations and obtain some managerial insights.
基金supported by the Central Government Guides Local Science and Technology Development Fund Project(2023ZY0020)Key R&D and Achievement Transformation Project in InnerMongolia Autonomous Region(2022YFHH0019)+3 种基金the Fundamental Research Funds for Inner Mongolia University of Science&Technology(2022053)Natural Science Foundation of Inner Mongolia(2022LHQN05002)National Natural Science Foundation of China(52067018)Metallurgical Engineering First-Class Discipline Construction Project in Inner Mongolia University of Science and Technology,Control Science and Engineering Quality Improvement and Cultivation Discipline Project in Inner Mongolia University of Science and Technology。
文摘In this paper,a bilevel optimization model of an integrated energy operator(IEO)–load aggregator(LA)is constructed to address the coordinate optimization challenge of multiple stakeholder island integrated energy system(IIES).The upper level represents the integrated energy operator,and the lower level is the electricity-heatgas load aggregator.Owing to the benefit conflict between the upper and lower levels of the IIES,a dynamic pricing mechanism for coordinating the interests of the upper and lower levels is proposed,combined with factors such as the carbon emissions of the IIES,as well as the lower load interruption power.The price of selling energy can be dynamically adjusted to the lower LA in the mechanism,according to the information on carbon emissions and load interruption power.Mutual benefits and win-win situations are achieved between the upper and lower multistakeholders.Finally,CPLEX is used to iteratively solve the bilevel optimization model.The optimal solution is selected according to the joint optimal discrimination mechanism.Thesimulation results indicate that the sourceload coordinate operation can reduce the upper and lower operation costs.Using the proposed pricingmechanism,the carbon emissions and load interruption power of IEO-LA are reduced by 9.78%and 70.19%,respectively,and the capture power of the carbon capture equipment is improved by 36.24%.The validity of the proposed model and method is verified.
基金supported by the National Natural Science Foundation of China No.71371133,No.61004015,No.61473204the Program for New Century Excellent Talents in Universities of China(NCET11-0377)
文摘Consumers pay more and more attention to the quality of perishable roods, which is mainly affected by storage temperature. This paper presents a dynamic pricing model for perishable foods under temperature control. To maximize the total profit, the optimal price and storage temperature are obtained using Pontryagin＇s maximum principle. A static pricing model is provided to compare with the dynamic one. It is shown by a numerical example that the dynamic policy can make more revenue than the static one. Moreover, the managerial implications are analyzed and the effectiveness of the proposed method is demonstrated.
文摘Nowadays,grid-connected renewable energy resources have widespread applications in the electricity market.However,providing household consumers with photovoltaic(PV)systems requires bilateral interfaces to exchange energy and data.In addition,residential consumers’contribution requires guaranteed privacy and secured data exchange.Dayahead dynamic pricing is one of the incentive-based demand response methods that has substantial effects on the integration of renewable energy resources with smart grids and social welfare.Different metering mechanisms of renewable energy resources such as feed-in tariffs,net metering,and net purchase and sale are important issues in power grid operation planning.In this paper,optimal condition decomposition method is used for dayahead dynamic pricing of grid-connected residential renewable energy resources under different metering mechanisms:feed-intariffs,net metering,and net purchase and sale in conjunction with carbon emission taxes.According to the stochastic nature of consumers’load and PV system products,uncertainties are considered in a two-stage decision-making process.The results demonstrate that the net metering with the satisfaction average of 68%for consumers and 32%for the investigated electric company leads to 28%total load reduction.For the case of net purchase and sale mechanism,a satisfaction average of 15%for consumers and 85%for the electric company results in 11%total load reduction.In feed-in-tariff mechanism,in spite of increased social welfare,load reduction does not take place.
基金supported by the National Natural Science Foundation of China(No.71372088)the scientific research fund of Education Department of Liaoning Province (No.L2014179,L2013207)
文摘The container sea-rail multimodal transport system faces complex challenges with de- mand uncertainties for joint slot allocation and dynamic pricing. The challenge is formulated as a two-stage optimal model based on revenue management （RM） as actual slots sale of multi-node container sea-rail multimodal transport usually includes contract sale to large shippers and free sale to scattered shippers. First stage in the model utilizes an origin-destination control approach, formulated as a stochastic integer programming equation, to settle long-term slot allocation in the contract market and empty container allocation. Second stage in the model is formulated as a stochastic nonlinear programming equation to solve a multiproduct joint dynamic pricing and inventory control problem for price settling and slot allocation in each period of free market. Considering the random nature of demand, the methods of chance constrained programming and robust optimi- zation are utilized to transform stochastic models into deterministic models. A numerical experiment is presented to verify the availability of models and solving methods. Results of considering uncertain/certain demand are compared, which show that the two-stage optimal strategy integrating slot allocation with dynamic pricing considering random de- mand is revealed to increase the revenue for multimodal transport operators （MTO） while concurrently satisfying shippers＇ demand. Research resulting from this paper will contribute to the theory and practice of container sea-rail multimodal transport revenue management and provide a scientific decision-making tool for MTO.
基金This research is partly supported by the National Science Foundation(Nos.CMMI-1030923,CMMI-1363261,CMMI-1538451 and CMMI-1635160)the National Natural Science Foundation of China(Nos.71228203,71201066 and 71520107001)research Grant of National University of Singapore(Project R-314-000-105-133).
文摘We study a dynamic pricing problem of a firm facing stochastic reference price effect.Randomness is incorporated in the formation of reference prices to capture either consumers’heterogeneity or exogenous factors that affect consumers’memory processes.We apply the stochastic optimal control theory to the problem and derive an explicit expression for the optimal pricing strategy.The explicit expression allows us to obtain the distribution of the steady-state reference price.We compare the expected steadystate reference price to the steady-state reference price in a model with deterministic reference price effect,and we find that the former one is always higher.Our numerical study shows that the two steady-state reference prices can have opposite sensitivity to the problem parameters and the relative difference between the two can be very significant.
基金supported in part by Technology Project of State Grid Jiangsu Electric Power Co.,Ltd.,China,under Grant J2022011.
文摘Considering the widening of the peak-valley difference in the power grid and the difficulty of the existing fixed time-of-use electricity price mechanism in meeting the energy demand of heterogeneous users at various moments or motivating users,the design of a reasonable dynamic pricing mechanism to actively engage users in demand response becomes imperative for power grid companies.For this purpose,a power grid-flexible load bilevel model is constructed based on dynamic pricing,where the leader is the dispatching center and the lower-level flexible load acts as the follower.Initially,an upper-level day-ahead dispatching model for the power grid is established,considering the lowest power grid dispatching cost as the objective function and incorporating the power grid-side constraints.Then,the lower level comprehensively considers the load characteristics of industrial load,energy storage,and data centers,and then establishes a lower-level flexible load operation model with the lowest user power-consuming cost as the objective function.Finally,the proposed method is validated using the IEEE-118 system,and the findings indicate that the dynamic pricing mechanism for peaking shaving and valley filling can effectively guide users to respond actively,thereby reducing the peak-valley difference and decreasing users’purchasing costs.
文摘In recent years, ride-on-demand (RoD) services such as Uber and Didi are becoming increasingly popular. Different from traditional taxi services, RoD services adopt dynamic pricing mechanisms to manipulate the supply and demand on the road, and such mechanisms improve service capacity and quality. Seeking route recommendation has been widely studied in taxi service. In RoD services, the dynamic price is a new and accurate indicator that represents the supply and demand condition, but it is yet rarely studied in providing clues for drivers to seek for passengers. In this paper, we proposed to incorporate the impacts of dynamic prices as a key factor in recommending seeking routes to drivers. We first showed the importance and need to do that by analyzing real service data. We then designed a Markov Decision Process (MDP) model based on passenger order and car GPS trajectories datasets, and took into account dynamic prices in designing rewards. Results show that our model not only guides drivers to locations with higher prices, but also significantly improves driver revenue. Compared with things with the drivers before using the model, the maximum yield after using it can be increased to 28%.
基金The National Key Technology R&D Program of China during the 11th Five-Year Plan Period(No.2006BAH02A06)
文摘In two cases that upstream and downstream firms have the decision power of intermediate product prices in a two-level supply chain,the dynamic pricing mechanism of intermediate products is studied.When a party who has the decision power of pricing gives prices of intermediate products,the other side will give the supply or demand quantity of intermediate products which maximizes its own profits,then the party who decides price has two pricing strategies.One uses the matching price which meets the other party's demand or supply needs according to the prices of intermediate products in the next cycle.The other uses the convex combinations of the current price and the matching price which satisfies the other party's demand or supply as the price of the intermediate product in the next cycle.No matter which side has the decision power of intermediate product prices between upstream and downstream firms,results show that in the first pricing strategy,only in one case of the pricing of intermediate products stable;but in the second pricing strategy,both of the cases of pricing of intermediate products are stable in a certain field of combined parameters.
文摘China＇s first interest rate hike during the last decade, aiming to cool down the seemingly overheated real estate market, had aroused more caution on housing market. This paper aims to analyze the housing price dynamics after an unanticipated economic shock, which was believed to have similar properties with the backward-looking expecta- tion models. The analysis of the housing price dynamics is based on the cobweb model with a simple user cost affected demand and a stock-flow supply assumption. Several nth- order delay rational difference equations are set up to illustrate the properties of housing dynamics phenomena, such as the equilibrium or oscillations, overshoot or undershoot and convergent or divergent, for a kind of heterogeneous backward-looking expectation models. The results show that demand elasticity is less than supply elasticity is not a necessary condition for the occurrence of oscillation. The housing price dynamics will vary substantially with the heterogeneous backward-looking expectation assumption and some other endogenous factors.
基金supported by the Guangxi Science and Technology Major Special Project (Project Number GUIKEAA22067079-1).
文摘With the development of renewable energy technologies such as photovoltaics and wind power,it has become a research hotspot to improve the consumption rate of new energy and reduce energy costs through the deployment of energy storage.To solve the problem of the interests of different subjects in the operation of the energy storage power stations(ESS)and the integrated energy multi-microgrid alliance(IEMA),this paper proposes the optimization operation method of the energy storage power station and the IEMA based on the Stackelberg game.In the upper layer,ESS optimizes charging and discharging decisions through a dynamic pricing mechanism.In the lower layer,IEMA optimizes the output of various energy conversion coupled devices within the IEMA,as well as energy interaction and demand response(DR),based on the energy interaction prices provided by ESS.The results demonstrate that the optimization strategy proposed in this paper not only effectively balances the benefits of the IEMA and ESS but also enhances energy consumption rates and reduces IEMA energy costs.
文摘Machine learning is an Artificial Intelligence (or AI) application, an idea that came into being by giving machines access to data and letting them learn by themselves. AI has been making headlines, especially since ChatGPT was introduced. Malaysia has taken many significant steps to embrace and integrate the technology into various sectors. These include encouraging large companies to build AI infrastructure, creating AI training opportunities (for example, the local media reported Microsoft and Google plan to invest USD 2.2 billion and USD 2 billion, respectively, in the said activities), and, as part of AI Talent Roadmap 2024-2030, establishing AI faculty in one of its public universities (i.e., “Universiti Teknologi Malaysia”) leading the way in the integration and teaching of AI throughout the country. This article introduces several products developed by the author (for the energy and transportation industries) and recommends their improvement by incorporating Machine learning.
基金supported by the National Natural Science Foundation of China(No.U22B20105).
文摘The increasingly large number of electric vehicles(EVs)has resulted in a growing concern for EV charging station load prediction for the purpose of comprehensively evaluating the influence of the charging load on distribution networks.To address this issue,an EV charging station load predictionmethod is proposed in coupled urban transportation and distribution networks.Firstly,a finer dynamic urban transportation network model is formulated considering both nodal and path resistance.Then,a finer EV power consumption model is proposed by considering the influence of traffic congestion and ambient temperature.Thirdly,the Monte Carlo method is applied to predict the distribution of EVcharging station load based on the proposed dynamic urban transportation network model and finer EV power consumption model.Moreover,a dynamic charging pricing scheme for EVs is devised based on the EV charging station load requirements and the maximum thresholds to ensure the security operation of distribution networks.Finally,the validity of the proposed dynamic urban transportation model was verified by accurately estimating five sets of test data on travel time by contrast with the BPR model.The five groups of travel time prediction results showed that the average absolute percentage errors could be improved from 32.87%to 37.21%compared to the BPR model.Additionally,the effectiveness of the proposed EV charging station load prediction method was demonstrated by four case studies in which the prediction of EV charging load was improved from27.2 to 31.49MWh by considering the influence of ambient temperature and speed on power energy consumption.
文摘This research aims to test the housing price dynamics when considering heterogeneous boundedly rational expectations such as naive expectation, adaptive expectation and biased belief. The housing market is investigated as an evolutionary system with heterogeneous and competing expectations. The results show that the dynamics of the expected housing price varies substantially when heterogeneous expectations are considered together with some other endogenous factors. Simulation results explain some stylized phenomena such as equilibrium or oscillation, convergence or divergence, and over-shooting or under-shooting. Furthermore, the results suggest that variation of the proportion of groups of agents is basically dependent on the selected strategies. It also indicates that control policies should be chosen carefully in consistence with a unique real estate market during a unique period since certain parameter portfolio may increase or suppress oscillation.
