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Distributed Algorithms for Internet-of-Things-Enabled Prosumer Markets: A Control Theoretic Perspective

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Analytics for the Sharing Economy: Mathematics, Engineering and Business Perspectives

Abstract

In many sharing economy scenarios, agents both produce as well as consume a resource; we call them prosumers. A community of prosumers agrees to sell excess resource to another community in a prosumer market. In this chapter, we propose a control theoretic approach to regulate the number of prosumers in a prosumer community, where each prosumer has a cost function that is coupled through its time-averaged production and consumption of the resource. Furthermore, each prosumer runs its distributed algorithm and takes only binary decisions in a probabilistic way, whether to produce one unit of the resource or not and to consume one unit of the resource or not. In the proposed approach, prosumers do not explicitly exchange information with each other due to privacy reasons, but little exchange of information is required for feedback signals, broadcast by a central agency. In the proposed approach, prosumers achieve the optimal values asymptotically. Furthermore, the proposed approach is suitable to implement in an IoT context with minimal demands on infrastructure. We describe two use cases; community-based car sharing and collaborative energy storage for prosumer markets. We also present simulation results to check the efficacy of the algorithms.

The work is partly supported by Natural Sciences and Engineering Research Council of Canada grant no. RGPIN-2018-05096, Danish ForskEL programme (now EUDP) through the Energy Collective project (grant no. 2016-1-12530), and by Science Foundation Ireland grant no. 16/IA/4610.

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Notes

  1. 1.

    In the network architectures, p represents a prosumer.

  2. 2.

    Depending on the application, the processes of production and consumption may be more appropriately modeled on a continuous time-scale. In this case, we interpret time instants \(t_k\) at those times in which the prosumption over the interval \((t_{k-1},t_k]\) is accounted for.

  3. 3.

    We initialize \(\varOmega _x(0)\) and \(\varOmega _y(0)\) with positive real numbers.

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Author information

Authors and Affiliations

  1. Concordia Institute for Information Systems Engineering, Concordia University, Montreal, QC, Canada

    Syed Eqbal Alam & Jia Yuan Yu

  2. Dyson School of Design Engineering, Imperial College London, London, UK

    Robert Shorten

  3. Faculty of Computer Science and Mathematics, University of Passau, Passau, Germany

    Fabian Wirth

Authors
  1. Syed Eqbal Alam
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  2. Robert Shorten
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  3. Fabian Wirth
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  4. Jia Yuan Yu
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Corresponding author

Correspondence to Syed Eqbal Alam .

Editor information

Editors and Affiliations

  1. DESTEC, University of Pisa, Pisa, Italy

    Emanuele Crisostomi

  2. Ivey Business School, University of Western Ontario, London, Canada

    Bissan Ghaddar

  3. Moovel Group GmbH, Stuttgart, Germany

    Florian Häusler

  4. Ivey Business School, London, ON, Canada

    Joe Naoum-Sawaya

  5. Department of Information & Electrical Engineering and Applied Mathematics, University of Salerno, Fisciano, Salerno, Italy

    Giovanni Russo

  6. Dyson School of Design Engineering, Imperial College London, London, UK

    Robert Shorten

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Alam, S.E., Shorten, R., Wirth, F., Yu, J.Y. (2020). Distributed Algorithms for Internet-of-Things-Enabled Prosumer Markets: A Control Theoretic Perspective. In: Crisostomi, E., Ghaddar, B., Häusler, F., Naoum-Sawaya, J., Russo, G., Shorten, R. (eds) Analytics for the Sharing Economy: Mathematics, Engineering and Business Perspectives. Springer, Cham. https://doi.org/10.1007/978-3-030-35032-1_9

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