• Title/Summary/Keyword: Adaptive Pricing

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Methods for Adding Demand Response Capability to a Thermostatically Controlled Load with an Existing On-off Controller

  • Jin, Young Gyu;Yoon, Yong Tae
    • Journal of Electrical Engineering and Technology
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    • v.10 no.3
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    • pp.755-765
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    • 2015
  • A thermostatically controlled load (TCL) can be one of the most appropriate resources for demand response (DR) in a smart grid environment. DR capability can be effectively implemented in a TCL with various intelligent control methods. However, because traditional on-off control is still a commonly used method in a TCL, it is useful to develop a method for adding DR capability to the TCL with an existing on-off controller. As a specific realization of supervisory control for implementing DR capability in the TCL, two methods are proposed - a method involving the changing of a set point and a method involving the paralleling of an identified system without delay. The proposed methods are analyzed through the simulations with an electric heater for different power consumption levels in the on-state. Considerable cost benefit can be achieved with the proposed methods when compared with the case without DR. In addition, the observations suggest that a medium power consumption level, instead of the maximum power, in the on-state should be used for consistently obtaining the cost benefit without severe temperature deviation from the specified temperature range for DR.

QoS- and Revenue Aware Adaptive Scheduling Algorithm

  • Joutsensalo, Jyrki;Hamalainen, Timo;Sayenko, Alexander;Paakkonen, Mikko
    • Journal of Communications and Networks
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    • v.6 no.1
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    • pp.68-77
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    • 2004
  • In the near future packet networks should support applications which can not predict their traffic requirements in advance, but still have tight quality of service requirements, e.g., guaranteed bandwidth, jitter, and packet loss. These dynamic characteristics mean that the sources can be made to modify their data transfer rates according to network conditions. Depending on the customer&; needs, network operator can differentiate incoming connections and handle those in the buffers and the interfaces in different ways. In this paper, dynamic QoS-aware scheduling algorithm is presented and investigated in the single node case. The purpose of the algorithm is in addition to fair resource sharing to different types of traffic classes with different priorities ?to maximize revenue of the service provider. It is derived from the linear type of revenue target function, and closed form globally optimal formula is presented. The method is computationally inexpensive, while still producing maximal revenue. Due to the simplicity of the algorithm, it can operate in the highly nonstationary environments. In addition, it is nonparametric and deterministic in the sense that it uses only the information about the number of users and their traffic classes, not about call density functions or duration distributions. Also, Call Admission Control (CAC) mechanism is used by hypothesis testing.

Interpreting Bounded Rationality in Business and Industrial Marketing Contexts: Executive Training Case Studies (집행관배훈안례연구(阐述工商业背景下的有限合理性):집행관배훈안례연구(执行官培训案例研究))

  • Woodside, Arch G.;Lai, Wen-Hsiang;Kim, Kyung-Hoon;Jung, Deuk-Keyo
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.3
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    • pp.49-61
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    • 2009
  • This article provides training exercises for executives into interpreting subroutine maps of executives' thinking in processing business and industrial marketing problems and opportunities. This study builds on premises that Schank proposes about learning and teaching including (1) learning occurs by experiencing and the best instruction offers learners opportunities to distill their knowledge and skills from interactive stories in the form of goal.based scenarios, team projects, and understanding stories from experts. Also, (2) telling does not lead to learning because learning requires action-training environments should emphasize active engagement with stories, cases, and projects. Each training case study includes executive exposure to decision system analysis (DSA). The training case requires the executive to write a "Briefing Report" of a DSA map. Instructions to the executive trainee in writing the briefing report include coverage in the briefing report of (1) details of the essence of the DSA map and (2) a statement of warnings and opportunities that the executive map reader interprets within the DSA map. The length maximum for a briefing report is 500 words-an arbitrary rule that works well in executive training programs. Following this introduction, section two of the article briefly summarizes relevant literature on how humans think within contexts in response to problems and opportunities. Section three illustrates the creation and interpreting of DSA maps using a training exercise in pricing a chemical product to different OEM (original equipment manufacturer) customers. Section four presents a training exercise in pricing decisions by a petroleum manufacturing firm. Section five presents a training exercise in marketing strategies by an office furniture distributer along with buying strategies by business customers. Each of the three training exercises is based on research into information processing and decision making of executives operating in marketing contexts. Section six concludes the article with suggestions for use of this training case and for developing additional training cases for honing executives' decision-making skills. Todd and Gigerenzer propose that humans use simple heuristics because they enable adaptive behavior by exploiting the structure of information in natural decision environments. "Simplicity is a virtue, rather than a curse". Bounded rationality theorists emphasize the centrality of Simon's proposition, "Human rational behavior is shaped by a scissors whose blades are the structure of the task environments and the computational capabilities of the actor". Gigerenzer's view is relevant to Simon's environmental blade and to the environmental structures in the three cases in this article, "The term environment, here, does not refer to a description of the total physical and biological environment, but only to that part important to an organism, given its needs and goals." The present article directs attention to research that combines reports on the structure of task environments with the use of adaptive toolbox heuristics of actors. The DSA mapping approach here concerns the match between strategy and an environment-the development and understanding of ecological rationality theory. Aspiration adaptation theory is central to this approach. Aspiration adaptation theory models decision making as a multi-goal problem without aggregation of the goals into a complete preference order over all decision alternatives. The three case studies in this article permit the learner to apply propositions in aspiration level rules in reaching a decision. Aspiration adaptation takes the form of a sequence of adjustment steps. An adjustment step shifts the current aspiration level to a neighboring point on an aspiration grid by a change in only one goal variable. An upward adjustment step is an increase and a downward adjustment step is a decrease of a goal variable. Creating and using aspiration adaptation levels is integral to bounded rationality theory. The present article increases understanding and expertise of both aspiration adaptation and bounded rationality theories by providing learner experiences and practice in using propositions in both theories. Practice in ranking CTSs and writing TOP gists from DSA maps serves to clarify and deepen Selten's view, "Clearly, aspiration adaptation must enter the picture as an integrated part of the search for a solution." The body of "direct research" by Mintzberg, Gladwin's ethnographic decision tree modeling, and Huff's work on mapping strategic thought are suggestions on where to look for research that considers both the structure of the environment and the computational capabilities of the actors making decisions in these environments. Such research on bounded rationality permits both further development of theory in how and why decisions are made in real life and the development of learning exercises in the use of heuristics occurring in natural environments. The exercises in the present article encourage learning skills and principles of using fast and frugal heuristics in contexts of their intended use. The exercises respond to Schank's wisdom, "In a deep sense, education isn't about knowledge or getting students to know what has happened. It is about getting them to feel what has happened. This is not easy to do. Education, as it is in schools today, is emotionless. This is a huge problem." The three cases and accompanying set of exercise questions adhere to Schank's view, "Processes are best taught by actually engaging in them, which can often mean, for mental processing, active discussion."

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Implementation of the Agent using Universal On-line Q-learning by Balancing Exploration and Exploitation in Reinforcement Learning (강화 학습에서의 탐색과 이용의 균형을 통한 범용적 온라인 Q-학습이 적용된 에이전트의 구현)

  • 박찬건;양성봉
    • Journal of KIISE:Software and Applications
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    • v.30 no.7_8
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    • pp.672-680
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    • 2003
  • A shopbot is a software agent whose goal is to maximize buyer´s satisfaction through automatically gathering the price and quality information of goods as well as the services from on-line sellers. In the response to shopbots´ activities, sellers on the Internet need the agents called pricebots that can help them maximize their own profits. In this paper we adopts Q-learning, one of the model-free reinforcement learning methods as a price-setting algorithm of pricebots. A Q-learned agent increases profitability and eliminates the cyclic price wars when compared with the agents using the myoptimal (myopically optimal) pricing strategy Q-teaming needs to select a sequence of state-action fairs for the convergence of Q-teaming. When the uniform random method in selecting state-action pairs is used, the number of accesses to the Q-tables to obtain the optimal Q-values is quite large. Therefore, it is not appropriate for universal on-line learning in a real world environment. This phenomenon occurs because the uniform random selection reflects the uncertainty of exploitation for the optimal policy. In this paper, we propose a Mixed Nonstationary Policy (MNP), which consists of both the auxiliary Markov process and the original Markov process. MNP tries to keep balance of exploration and exploitation in reinforcement learning. Our experiment results show that the Q-learning agent using MNP converges to the optimal Q-values about 2.6 time faster than the uniform random selection on the average.