Mechanism Design for Demand Management in Energy Communities

We consider a demand management problem in an energy community, in which several users obtain energy from an external organization such as an energy company and pay for the energy according to pre-specified prices that consist of a time-dependent price per unit of energy as well as a separate price for peak demand. Since users’ utilities are their private information, which they may not be willing to share, a mediator, known as the planner, is introduced to help optimize the overall satisfaction of the community (total utility minus total payments) by mechanism design. A mechanism consists of a message space, a tax/subsidy, and an allocation function for each user. Each user reports a message chosen from her own message space, then receives some amount of energy determined by the allocation function, and pays the tax specified by the tax function. A desirable mechanism induces a game, the Nash equilibria (NE), of which results in an allocation that coincides with the optimal allocation for the community. As a starting point, we design a mechanism for the energy community with desirable properties such as full implementation, strong budget balance and individual rationality for both users and the planner. We then modify this baseline mechanism for communities where message exchanges are allowed only within neighborhoods, and consequently, the tax/subsidy and allocation functions of each user are only determined by the messages from their neighbors. All of the desirable properties of the baseline mechanism are preserved in the distributed mechanism. Finally, we present a learning algorithm for the baseline mechanism, based on projected gradient descent, that is guaranteed to converge to the NE of the induced game.

The Japanese Banks in the Lasting Low-, Zero- and Negative-Interest Rate Environment

The bursting of the Japanese bubble economy in the early 1990s put the stage for a lasting low-, zero-, and negative-interest rate environment, which fundamentally changed the business environment for the Japanese commercial banks. On the income side, with interest margins becoming increasingly depressed, net interest revenues declined, which forced the banks to expand revenues from fees and commissions. The banks had to cut costs by reducing the number of employees, closing branches and merging into larger banks. The gradual concentration process has most recently cumulated in the relaxation of the monopoly law. With the capital allocation function of banks being undermined, the Japanese economy has become zombified, suffering from anemic growth.

Obstacle avoidance control of a human-in-the-loop mobile robot system using harmonic potential fields

SUMMARYThis paper considers applications where a human agent is navigating a semi-autonomous mobile robot in an environment with obstacles. The human input to the robot can be based on a desired navigation objective, which may not be known to the robot. Additionally, the semi-autonomous robot can be programmed to ensure obstacle avoidance as it navigates the environment. A shared control architecture can be used to appropriately fuse the human and the autonomy inputs to obtain a net control input that drives the robot. In this paper, an adaptive, near-continuous control allocation function is included in the shared controller, which continuously varies the control effort exerted by the human and the autonomy based on the position of the robot relative to obstacles. The developed control allocation function facilitates the human to freely navigate the robot when away from obstacles, and it causes the autonomy control input to progressively dominate as the robot approaches obstacles. A harmonic potential field-based non-linear sliding mode controller is developed to obtain the autonomy control input for obstacle avoidance. In addition, a robust feed-forward term is included in the autonomy control input to maintain stability in the presence of adverse human inputs, which can be critical in applications such as to prevent collision or roll-over of smart wheelchairs due to erroneous human inputs. Lyapunov-based stability analysis is presented to guarantee finite-time stability of the developed shared controller, i.e., the autonomy guarantees obstacle avoidance as the human navigates the robot. Experimental results are provided to validate the performance of the developed shared controller.

Uniqueness of concentration index

This paper establishes axioms for concentration index (CI) and its allocation function. It proves that the Herfindahl index (HI) and the square allocation function are the only one that satisfies these rules.