@article{0be647241e614927b55be0516d42651b,
title = "Portfolio design of a demand response aggregator with satisficing consumers",
abstract = "This paper studies the impact of consumer behavior on the portfolio design of a demand response (DR) aggregator. Consumer behavior is modeled using elements of satisficing theory. We develop an optimization model to decide the optimal portfolio of DR contracts for an aggregator participating in the electricity market. In our model, the aggregator must pay a premium to enable the participation of consumers who have a certain aspiration threshold, below which they will not participate. Thus, the proposed model determines the premiums to be offered to consumers in order to obtain a DR portfolio that maximizes the aggregator's operating surplus while satisfying the aspirations of participating consumers. Several simulations are performed to obtain insights on the value of the DR resource, and the importance of parameters used to model the consumer behavior.",
keywords = "Contracts, ISO, consumer behavior, generators, load modeling, portfolios, real time system",
author = "Florian Salah and Rodrigo Henriquez and George Wenzel and Olivares, {Daniel E.} and Matias Negrete-Pincetic and Christof Weinhardt",
note = "Funding Information: This work was supported in part by CONICYT/FONDECYT under Grant 11140621, in part by CONICYT/FONDAP under Grant 15110019, and in part by Complex Engineering Systems Institute ISCI (CONICYT) under Grant FB0816. Paper no. TSG-00897-2017. Funding Information: Manuscript received June 28, 2017; revised November 16, 2017; accepted January 11, 2018. Date of publication January 30, 2018; date of current version April 19, 2019. This work was supported in part by CONICYT/FONDECYT under Grant 11140621, in part by CONICYT/FONDAP under Grant 15110019, and in part by Complex Engineering Systems Institute ISCI (CONICYT) under Grant FB0816. Paper no. TSG-00897-2017. (Corresponding author: Florian Salah.) F. Salah and C. Weinhardt are with the Institute for Information Systems and Marketing, Department of Economics and Management, Karlsruhe Institute of Technology, 76131 Karlsruhe, Germany (e-mail: florian.salah@kit.edu). Publisher Copyright: {\textcopyright} 2010-2012 IEEE.",
year = "2019",
month = may,
doi = "10.1109/TSG.2018.2799822",
language = "English",
volume = "10",
pages = "2475--2484",
journal = "IEEE Transactions on Smart Grid",
issn = "1949-3053",
publisher = "Institute of Electrical and Electronics Engineers Inc.",
number = "3",
}