This paper proposes a novel energy sharing mechanism for prosumers who can
produce and consume. Different from most existing works, the role of individual
prosumer as a seller or buyer in our model is endogenously determined. Several
desirable properties of the proposed mechanism are proved based on a
generalized game-theoretic model. We show that the Nash equilibrium exists and
is the unique solution of an equivalent convex optimization problem. The
sharing price at the Nash equilibrium equals to the average marginal disutility
of all prosumers. We also prove that every prosumer has the incentive to
participate in the sharing market, and prosumers' total cost decreases with
increasing absolute value of price sensitivity. Furthermore, the Nash
equilibrium approaches the social optimal as the number of prosumers grows, and
competition can improve social welfare.Comment: 16 pages, 7 figure
