Mechanism Design Approach for Energy Efficiency

In this work we deploy a mechanism design approach for allocating a divisible commodity (electricity in our example) among con- sumers. We consider each consumer with an associated personal valua- tion function of the energy resource during a certain time interval. We aim to select the optimal consumption profile for every user avoiding consumption peaks when the total required energy could exceed the en- ergy production. The mechanism will be able to drive users in shifting energy consumptions in different hours of the day. We start by presenting a very basic Vickrey-Clarke-Groves mechanism, we discuss its weakness and propose several more complex variants.