A homogeneous group bargaining algorithm in a smart grid

In this paper, we consider a smart grid incorporating numerous devices. In order to manage the energy distribution, we propose an algorithm that employs the group bargaining concept of game theory to efficiently allocate electricity resources among these devices. First, we divide the devices into non-overlapping groups, and allow devices to bargain both within and across groups. Second, we regard each group as homogeneous, so that the bargaining authority can be delegated to a representative device. Thus, the bargaining problem involves only the representatives, each of which bargains with other representatives on behalf of the group it belongs to. Third, we compare various bargaining results via a utility function that indicates the satisfaction level of a representative in terms of the bargaining result. Finally, the algorithm determines the optimal resource distribution pattern by maximizing the aggregated utilities of all representatives. Simulation results show that the proposed algorithm can reduce the complexity of energy distribution by distinguishing between inter- and intra-group bargaining processes, and can efficiently allocate resources to various devices according to their actual requirements.