Consensus-based approach to peer-to-peer electricity markets with product differentiation

With the sustained deployment of distributed generation capacities and the more proactive role of consumers, power systems and their operation are drifting away from a conventional top-down hierarchical structure. Electricity market structures, however, have not yet embraced that evolution. Respecting the high-dimensional, distributed and dynamic nature of modern power systems would translate to designing peer-to-peer markets or, at least, to using such an underlying decentralized structure to enable a bottom-up approach to future electricity markets. A peer-to-peer market structure based on a Multi-Bilateral Economic Dispatch (MBED) formulation is introduced, allowing for multi-bilateral trading with product differentiation, for instance based on consumer preferences. A Relaxed Consensus+Innovation (RCI) approach is described to solve the MBED in fully decentralized manner. A set of realistic case studies and their analysis allow us showing that such peer-to-peer market structures can effectively yield market outcomes that are different from centralized market structures and optimal in terms of respecting consumers preferences while maximizing social welfare. Additionally, the RCI solving approach allows for a fully decentralized market clearing which converges with a negligible optimality gap, with a limited amount of information being shared.Comment: Accepted for publication in IEEE Transactions on Power System

Distributed Model Predictive Consensus via the Alternating Direction Method of Multipliers

We propose a distributed optimization method for solving a distributed model predictive consensus problem. The goal is to design a distributed controller for a network of dynamical systems to optimize a coupled objective function while respecting state and input constraints. The distributed optimization method is an augmented Lagrangian method called the Alternating Direction Method of Multipliers (ADMM), which was introduced in the 1970s but has seen a recent resurgence in the context of dramatic increases in computing power and the development of widely available distributed computing platforms. The method is applied to position and velocity consensus in a network of double integrators. We find that a few tens of ADMM iterations yield closed-loop performance near what is achieved by solving the optimization problem centrally. Furthermore, the use of recent code generation techniques for solving local subproblems yields fast overall computation times.Comment: 7 pages, 5 figures, 50th Allerton Conference on Communication, Control, and Computing, Monticello, IL, USA, 201

Correspondences and Contradictions in International and Domestic Conflict Resolution: Lessons From General Theory and Varied Contexts

Does the field of conflict resolution have any broadly applicable theories that work across the different domains of international and domestic conflict? Or, are contexts, participants, and resources so domain specific and variable that only thick descriptions of particular contexts will do? These are important questions which have been plaguing me in this depressing time for conflict resolution professionals, from September 11,2001 (9/11), to the war against Iraq. Have we learned anything about conflict resolution that really does improve our ability to describe, predict, and act to reduce unnecessary and harmful conflict? These are the questions I want to explore in this essay, all the while knowing that I will ask more questions than I have answers to. My hope is to spark more rigorous attention to the possibility of comparative dispute resolution study and practice, using key concepts, theories, empirical studies, practical wisdom, and experiential insights to spark and encourage more multi-level and multi-unit analysis of some of our shared propositions

A Rule-driven Approach for Defining the Behavior of Negotiating Software Agents

One problem with existing agent-mediated negotiation systems is that they rely on ad hoc, static, non-adaptive, and hardcoded schemes to represent the behaviour of agents. This limitation is probably due to the complexity of the negotiation task itself. Indeed, while negotiating, software (human) agents face tough decisions. These decisions are based not only on the information made available by the negotiation server, but on the behaviour of the other participants in the negotiation process as well. The information and the behaviour in question are constantly changing and highly uncertain. In the first part of the paper, we propose a rule-driven approach to represent, manage and explore negotiation strategies and coordination information. For that, we divide the behaviour of negotiating agents into protocols, strategies and coordination. Among the many advantages of the proposed solution, we can cite the high level of abstraction, the closeness to human understanding, the versatility, and the possibility to modify the agents' behaviour during the negotiation process. To validate our solution, we ran many agent tournaments, and used the rule-driven approach to implement bidding strategies that are common in the English and Dutch auctions. We also implemented simple coordination schemes across several auctions. The ongoing validation work is detailed and discussed in the second part of the paper. Un des inconvénients qu'on retrouve fréquemment dans les systèmes de négociation par agents est qu'ils reposent sur des schémas ad-hoc, non adaptatifs et figés dans le code pour représenter le comportement des agents. Cette limitation est probablement due à la complexité de l'activité de négociation elle-même. En effet, au cours de la négociation, les agents logiciels (humains) ont des décisions difficiles à prendre. Ces décisions ne sont pas seulement basées sur l'information disponible sur le serveur de négociation, mais aussi sur le comportement des autres participants durant le processus de négociation. L'information et le comportement en question changent constamment et sont très incertains. Dans la première partie de l'article, nous proposons une approche à base de règles pour représenter, gérer et explorer les stratégies de négociation ainsi que l'information de coordination. Parmi les nombreux avantages de la solution proposée, on peut citer le haut niveau d'abstraction, la proximité avec la compréhension humaine, la souplesse d'utilisation et la possibilité de modifier le comportement des agents durant le processus de négociation. Pour valider notre solution, nous avons effectué plusieurs tournois entre agents et utilisé l'approche à base de règles pour implémenter des stratégies simples applicables à l'enchère anglaise et à l'enchère hollandaise. Nous avons aussi implémenté des schémas simples de coordination impliquant plusieurs enchères. Le travail de validation, en cours, est détaillé et discuté dans la seconde partie de l'article.e-negotiation, online auction, software agent, negotiation strategy, coordination, rule-based system, rule engine, Négociation électronique, enchères en ligne, agents logiciels, stratégie de négociation, coordination, système à base de règles, moteur de règles

A Study On Distributed Model Predictive Consensus

We investigate convergence properties of a proposed distributed model predictive control (DMPC) scheme, where agents negotiate to compute an optimal consensus point using an incremental subgradient method based on primal decomposition as described in Johansson et al. [2006, 2007]. The objective of the distributed control strategy is to agree upon and achieve an optimal common output value for a group of agents in the presence of constraints on the agent dynamics using local predictive controllers. Stability analysis using a receding horizon implementation of the distributed optimal consensus scheme is performed. Conditions are given under which convergence can be obtained even if the negotiations do not reach full consensus.Comment: 20 pages, 4 figures, longer version of paper presented at 17th IFAC World Congres

Introduction & Coda, Multi-Party Dispute Resolution, Democracy and Decision Making: Vol. II of Complex Dispute Resolution

The Complex Dispute Resolution series collects essays on the development of foundational dispute resolution theory and practice and its application to increasingly more complex settings of conflicts in the world, including multi-party and multi-issue decision making, negotiations in political policy formation and governance, and international conflict resolution. Each volume contains an original introduction by the editor, which explores the key issues in the field. All three volumes feature essays which span an interdisciplinary range of fields, law, political science, game theory, decision science, economics, social and cognitive psychology, sociology and anthropology and consider issues in the uses of informal and private processes, as well as more formal and public processes. The essays question whether the development of universal theoretical insights about conflict resolution is possible with variable numbers of parties and issues and in multi-cultural and multi-jural settings. Each volume also presents a coda, summarizing key issues in the field and suggesting further avenues for research. The second volume (and the introductory essay here) applies the theoretical foundations and practices of primary processes in dispute resolution–negotiation, mediation, arbitration and some hybrid processes in both public and private, informal and formal settings to more complex multi-party and multi issue settings, and asks whether foundational theories must be altered when there are more parties and issues. What difference do larger numbers make in theory and practice of dispute resolution and decision making? Other theoretical and empirical observations of the role of third party neutrals and facilitators in multi-party settings are explored, and applied disciplines such as game theory and decision sciences are applied to complex dispute resolution settings. Illustrations of uses of these processes in different substantive areas, e.g. legal disputes, public policy decision making, politics and governance, environmental matters, institutional relations, and high conflict settings are provided. The volume collects classic articles in multi-party, multi-issue theory and practice while interrogating the issues of how the numbers of parties and issues, different contexts and cultures challenges our efforts to create generalizable theory and practice of human conflict resolution. The review essay also discusses recent efforts to seek correspondences and learning from application of conflict resolution theory and practice to the work on deliberative democracy and political decision making. The coda suggests avenues for future research. Some attention is paid to issues of ethics and political theory, as well as evaluation of efficacy, in the use of third party facilitators in public policy and governance disputes

Playing Three-Level Games in the Global Economy. Case Studies from the EU. College of Europe EU Diplomacy Paper 4/2008, May 2008

The case studies in this paper are a selection of essays that have been written in the framework of the compulsory first-semester course The EU in a Global Political Economy Context, taught by Professor Sieglinde Gstöhl, in the academic year 2007-2008 in the EU International Relations and Diplomacy Studies programme at the College of Europe. They all address recent cases of two- or three-level games played by the European Union in different policy fields of the global economy (reflecting the state of affairs at the end of 2007)