arXiv Statistics ML By Jing Shang, Mohammad Mehrabi, Xinyang Zhou, Mahmoud Saleh, Andrey Bernstein, Stefan Wager

Learning to Price Electricity for Optimal Demand Response

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The paper proposes a neural‑network algorithm for contextual electricity pricing, framing the problem as a Stackelberg game and using a mean‑field solution to learn constrained mappings from contextual features (e.g., weather, sunrise/sunset, day‑of‑week) to feasible price signals. The method is validated through simulations of the energy grid in several U.S. cities, demonstrating that incorporating rich contextual information can significantly enhance the value of demand‑response programs.

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