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43 records found

Journal article (2024) - Ying Zhang, Valentin Robu, Sho Cremers, Sonam Norbu, Benoit Couraud, Merlinda Andoni, David Flynn, H. Vincent Poor
Peer-to-peer (P2P) energy trading and energy communities have garnered much attention over in recent years due to increasing investments in local energy generation and storage assets. Much research has been performed on the mechanisms and methodologies behind their implementation and realisation. However, the efficiency to be gained from P2P trading, and the structure of local energy markets raise many important challenges. To analyse the efficiency of P2P energy markets, in this work, we consider two different popular approaches to peer-to-peer trading: centralised (through a central market maker/clearing entity) vs. fully decentralised (P2P), and explore the comparative economic benefits of these models. We focus on the metric of Gains from Trade (GT), given optimal P2P trading schedule computed by a schedule optimiser. In both local market models, benefits from trading are realised mainly due to the diversity in consumption behaviour and renewable energy generation between prosumers in an energy community. Both market models will lead to the most promising P2P contracts (the ones with the highest Gains from Trade) to be established first. Yet, we find diversity decreases quickly as more peer-to-peer energy contracts are established and more prosumers join the market, leading to significantly diminishing returns. In this work, we aim to quantify this effect using real-world data from two large-scale smart energy trials in the UK, i.e. the Low Carbon London project and the Thames Valley Vision project. Our experimental study shows that, for both market models, only a small number of P2P contracts i.e. less than 10% of the possible P2P contracts are required to achieve the majority of the maximal potential Gains from Trade. Similarly, only a fraction of prosumers are required to participate in energy trading to realise significant GT; namely we found that 60% of the maximal GT can be realised with only 30% of prosumers’ participation, with the percentage of maximal GT reaching 80% when participation increases to 50% of prosumers. Finally, we study the effect that diversity in consumption profiles has on overall trading potential and dynamics in an energy community. We show that in a community with a DF(load diversity factor) = 1, 80% of potential maximal GT can be achieved by 10% of prosumers engaging in P2P trading, while in a community with DF = 1.5, it is beneficial for 40% of the prosumers to trade. ...

A smart local energy system

Journal article (2023) - Benoit Couraud, Merlinda Andoni, Valentin Robu, Sonam Norbu, Si Chen, David Flynn
The transition towards a more decarbonised, resilient and distributed energy system requires local initiatives, such as Smart Local Energy Systems (SLES), which lead communities to gain self-sufficiency and become electricity islands. Although many SLES projects have been recently deployed, only a few of them have managed to be successful, mostly due to an initial knowledge gap in the SLES planning and deployment phases. This paper leverages the knowledge from the UK's largest SLES demonstrator in the Orkney Islands, named the Responsive FLEXibility (ReFLEX) project, to propose a framework that will help communities to successfully implement a SLES. First, this paper describes how the multi-services electrical SLES implemented in Orkney reduces the impact of the energy transition on the electrical infrastructure. We identify and discuss the main enablers and barriers to a successful SLES, based on a review of SLES projects in the UK. Second, to help future communities to implement SLES, we extend the Smart Grid Architecture Model (SGAM) into a comprehensive multi-vector Smart Local Energy Architecture Model (SLEAM) that includes all main energy services, namely power, heat and transport. This extended architecture model describes the main components and interaction layers that need to be addressed in a comprehensive SLES. Next, to inform successful deployment of SLES, an extensive list of key performance indicators for SLES is proposed and implemented for the ReFLEX project. Finally, we discuss lessons learnt from the ReFLEX project and we list required future technologies that enable communities, energy policy makers and regulatory bodies to best prepare for the energy transition. ...
Journal article (2023) - Sho Cremers, Valentin Robu, Peter Zhang, Merlinda Andoni, Sonam Norbu, David Flynn
With the emergence of energy communities, where a number of prosumers invest in shared generation and storage, the issue of fair allocation of benefits is increasingly important. The Shapley value has attracted increasing interest for redistribution in energy settings — however, computing it exactly is intractable beyond a few dozen prosumers. In this paper, we first conduct a systematic review of the literature on the use of Shapley value in energy-related applications, as well as efforts to compute or approximate it. Next, we formalise the main methods for approximating the Shapley value in community energy settings, and propose a new one, which we call the stratified expected value approximation. To compare the performance of these methods, we design a novel method for exact Shapley value computation, which can be applied to communities of up to several hundred agents by clustering the prosumers into a smaller number of demand profiles. We perform a large-scale experimental comparison of the proposed methods, for communities of up to 200 prosumers, using large-scale, publicly available data from two large-scale energy trials in the UK (UKERC Energy Data Centre, 2017, UK Power Networks Innovation, 2021). Our analysis shows that, as the number of agents in the community increases, the relative difference to the exact Shapley value converges to under 1% for all the approximation methods considered. In particular, for most experimental scenarios, we show that there is no statistical difference between the newly proposed stratified expected value method and the existing state-of-the-art method that uses adaptive sampling (O'Brien et al., 2015), although the cost of computation for large communities is an order of magnitude lower. ...
Journal article (2023) - Philippe de Bekker, Sho Cremers, Sonam Norbu, David Flynn, Valentin Robu
Given the fundamental role of renewable energy assets in achieving global temperature control targets, new energy management methods are required to efficiently match intermittent renewable generation and demand. Based on analysing various designed cases, this paper explores a number of heuristics for a smart battery scheduling algorithm that efficiently matches available power supply and demand. The core of improvement of the proposed smart battery scheduling algorithm is exploiting future knowledge, which can be realized by current state-of-the-art forecasting techniques, to effectively store and trade energy. The performance of the developed heuristic battery scheduling algorithm using forecast data of demands, generation, and energy prices is compared to a heuristic baseline algorithm, where decisions are made solely on the current state of the battery, demand, and generation. The battery scheduling algorithms are tested using real data from two large-scale smart energy trials in the UK, in addition to various types and levels of simulated uncertainty in forecasts. The results show that when using a battery to store generated energy, on average, the newly proposed algorithm outperforms the baseline algorithm, obtaining up to 20–60% more profit for the prosumer from their energy assets, in cases where the battery is optimally sized and high-quality forecasts are available. Crucially, the proposed algorithm generates greater profit than the baseline method even with large uncertainty on the forecast, showing the robustness of the proposed solution. On average, only 2–12% of profit is lost on generation and demand uncertainty compared to perfect forecasts. Furthermore, the performance of the proposed algorithm increases as the uncertainty decreases, showing great promise for the algorithm as the quality of forecasting keeps improving. ...
Journal article (2022) - Weiqi Hua, Fengji Luo, Liang Du, Sijie Chen, Taesic Kim, Thomas Morstyn, Valentin Robu, Yue Zhou
Review (2022) - Lucas Kirschbaum, Valentin Robu, Jonathan Swingler, David Flynn
Electromagnetic Relays (Electromagnetic Relay (EMR)s) are omnipresent in electrical systems, ranging from mass-produced consumer products to highly specialised, safety-critical industrial systems. Our detailed literature review focused on EMR reliability highlighting the methods used to estimate the State of Health or the Remaining Useful Life emphasises the limited analysis and understanding of expressive EMR degradation indicators, as well as accessibility and use of EMR life cycle data sets. Prioritising these open challenges, a deep learning pipeline is presented in a prognostic context termed Electromagnetic Relay Useful Actuation Pipeline (EMRUA). Leveraging the attributes of causal convolution, a Temporal Convolutional Network (TCN) based architecture integrates an arbitrary long sequence of multiple features to produce a remaining useful switching actuations forecast. These features are extracted from raw, high volume life cycle data sets, namely EMR switching data (Contact-Voltage, Contact-Current). Monte-Carlo Dropout is utilised to estimate uncertainty during inference. The TCN hyperparameter space, as well as various methods to select and analyse long sequences of multivariate time series data are investigated. Subsequently, our results demonstrate improvements using the developed statistical feature-set over traditional, time-based features, commonly found in literature. EMRUA achieves an average forecasting mean absolute percentage error of ±12 % over the course of the entire EMR life. ...

Challenges and opportunities for artificial intelligence and robotics in the offshore wind sector

Review (2022) - Daniel Mitchell, Jamie Blanche, Sam Harper, Theodore Lim, Ranjeetkumar Gupta, Osama Zaki, Wenshuo Tang, Valentin Robu, Simon Watson, David Flynn
The UK has set plans to increase offshore wind capacity from 22GW to 154GW by 2030. With such tremendous growth, the sector is now looking to Robotics and Artificial Intelligence (RAI) in order to tackle lifecycle service barriers as to support sustainable and profitable offshore wind energy production. Today, RAI applications are predominately being used to support short term objectives in operation and maintenance. However, moving forward, RAI has the potential to play a critical role throughout the full lifecycle of offshore wind infrastructure, from surveying, planning, design, logistics, operational support, training and decommissioning. This paper presents one of the first systematic reviews of RAI for the offshore renewable energy sector. The state-of-the-art in RAI is analyzed with respect to offshore energy requirements, from both industry and academia, in terms of current and future requirements. Our review also includes a detailed evaluation of investment, regulation and skills development required to support the adoption of RAI. The key trends identified through a detailed analysis of patent and academic publication databases provide insights to barriers such as certification of autonomous platforms for safety compliance and reliability, the need for digital architectures for scalability in autonomous fleets, adaptive mission planning for resilient resident operations and optimization of human machine interaction for trusted partnerships between people and autonomous assistants. Our study concludes with identification of technological priorities and outlines their integration into a new ‘symbiotic digital architecture’ to deliver the future of offshore wind farm lifecycle management. ...

A systematic review of fundamental approaches and implementations

Review (2022) - Desen Kirli, Benoit Couraud, Valentin Robu, Marcelo Salgado-Bravo, Sonam Norbu, Merlinda Andoni, Ioannis Antonopoulos, Matias Negrete-Pincetic, David Flynn, Aristides Kiprakis
Given the ongoing transition towards a more decentralised and adaptive energy system, the potential of blockchain-enabled smart contracts for the energy sector is being increasingly recognised. Due to their self-executing, customisable and tamper-proof nature, they are seen as a key technology for enabling the transition to a more efficient, transparent and transactive energy market. The applications of smart contracts include coordination of smart electric vehicle charging, automated demand-side response, peer-to-peer energy trading and allocation of the control duties amongst the network operators. Nevertheless, their use in the energy sector is still in its early stages as there are many open challenges related to security, privacy, scalability and billing. In this paper, we systematically review 178 peer-reviewed publications and 13 innovation projects, providing a thorough analysis of the strengths and weaknesses of smart contracts used in the energy sector. This work offers a broad perspective on the opportunities and challenges that stakeholders using this technology face, in both current and emergent markets, such as peer-to-peer energy trading platforms. To provide a roadmap for researchers and practitioners interested in the technology, we propose a systematic model of the smart contracting process, by developing a novel 6-layer architecture, as well as presenting a sample energy contract in pseudocode form and as open-source code. Our analysis focuses on the two mainstream application areas we identify for smart contract use in this area: energy and flexibility trading, and distributed control. The paper concludes with a comprehensive, critical discussion of the advantages and challenges that must be addressed in the area of smart contracts and blockchains in energy, and a set of recommendations that researchers and developers should consider when applying smart contracts to energy system settings. ...
Journal article (2022) - Benoit Couraud, Valentin Robu, David Flynn, Merlinda Andoni, Sonam Norbu, Honorat Quinard
Recent years have seen a surge of interest in distributed residential batteries for households with renewable generation. Yet, assuring battery assets are profitable for their owners requires a complex optimisation of the battery asset and additional revenue sources, such as novel ways to access wholesale energy markets. In this paper, we propose a framework in which wholesale market bids are placed on forward energy markets by an aggregator of distributed residential batteries that are controlled in real time by a novel Home Energy Management System (HEMS) control algorithm to meet the market commitments, while maximising local self-consumption. The proposed framework consists of three stages. In the first stage, an optimal day-ahead or intra-day scheduling of the aggregated storage assets is computed centrally. For the second stage, a bidding strategy is developed for wholesale energy markets. Finally, in the third stage, a novel HEMS real-time control algorithm based on a smart contract allows coordination of residential batteries to meet the market commitments and maximise self-consumption of local production. Using a case study provided by a large U.K.-based energy demonstrator, we apply the framework to an aggregator with 70 residential batteries. Experimental analysis is done using real per minute data for demand and production. Results indicate that the proposed approach increases the aggregator's revenues by 35% compared to a case without residential flexibility, and increases the self-consumption rate of the households by a factor of two. The robustness of the results to uncertainty, forecast errors and to communication latency is also demonstrated. ...

A systematic literature review of local energy market models

Review (2022) - Timothy Capper, Anna Gorbatcheva, Mustafa A. Mustafa, Mohamed Bahloul, Jan Marc Schwidtal, Ruzanna Chitchyan, Merlinda Andoni, Valentin Robu, Mehdi Montakhabi, More authors...
Peer-to-peer, community or collective self-consumption, and transactive energy markets offer new models for trading energy locally. Over the past five years, there has been significant growth in the amount of academic literature examining how these local energy markets might function. This systematic literature review of 139 peer-reviewed journal articles examines the market designs used in these energy trading models. A modified version of the Business Ecosystem Architecture Modelling framework is used to extract market model information from the literature, and to identify differences and similarities between the models. This paper examines how peer-to-peer, community self-consumption and transactive energy markets are described in current literature. It explores the similarities and differences between these markets in terms of participation, governance structure, topology, and design. This paper systematises peer-to-peer, community self-consumption and transactive energy market designs, identifying six archetypes. Finally, it identifies five evidence gaps which require future research before these markets could be widely adopted. These evidence gaps are the lack of: consideration of physical constraints; a holistic approach to market design and operation; consideration about how these market designs will scale; consideration of information security; and, consideration of market participant privacy. ...
Conference paper (2021) - Xingyu Zhao, Wei Huang, Xiaowei Huang, Valentin Robu, David Flynn
Given the pressing need for assuring algorithmic transparency, Explainable AI (XAI) has emerged as one of the key areas of AI research. In this paper, we develop a novel Bayesian extension to the LIME framework, one of the most widely used approaches in XAI – which we call BayLIME. Compared to LIME, BayLIME exploits prior knowledge and Bayesian reasoning to improve both the consistency in repeated explanations of a single prediction and the robustness to kernel settings. BayLIME also exhibits better explanation fidelity than the state-of-the-art (LIME, SHAP and Grad- CAM) by its ability to integrate prior knowledge from, e.g., a variety of other XAI techniques, as well as verification and validation (V&V) methods. We demonstrate the desirable properties of BayLIME through both theoretical analysis and extensive experiments. ...
Journal article (2021) - Merlinda Andoni, Valentin Robu, Benoit Couraud, Wolf Gerrit Früh, Sonam Norbu, David Flynn
With increasing decarbonisation and accessibility to our energy systems and markets, there is a need to understand and optimise the value proposition for different stakeholders. Game-theoretic models represent a promising approach to study strategic interactions between self-interested private energy system investors. In this work, we design and evaluate a game-theoretic framework to study strategic interactions between profit-maximising players that invest in network, renewable generation and storage capacity. Specifically, we study the case where grid capacity is developed by a private renewable investor, but line access is shared with competing renewable and storage investors, thus enabling them to export energy and access electricity demand. We model the problem of deducing how much capacity each player should build as a non-cooperative Stackelberg-Cournot game between a dominant player (leader) who builds the power line and renewable generation capacity, and local renewable and storage investors (multiple followers), who react to the installation of the line by increasing their own capacity. Using data-driven analysis and simulations, we developed an empirical search method for estimating the game equilibrium, where the payoffs capture the realistic operation and control of the energy system under study. A practical demonstration of the underlying methodology is shown for a real-world grid reinforcement project in the UK. The methodology provides a realistic mechanism to analyse investor decision-making and investigate feasible tariffs that encourage distributed renewable investment, with sharing of grid access. ...
Journal article (2021) - Darius Roman, Saurabh Saxena, Valentin Robu, Michael Pecht, David Flynn
Lithium-ion batteries are ubiquitous in applications ranging from portable electronics to electric vehicles. Irrespective of the application, reliable real-time estimation of battery state of health (SOH) by on-board computers is crucial to the safe operation of the battery, ultimately safeguarding asset integrity. In this Article, we design and evaluate a machine learning pipeline for estimation of battery capacity fade—a metric of battery health—on 179 cells cycled under various conditions. The pipeline estimates battery SOH with an associated confidence interval by using two parametric and two non-parametric algorithms. Using segments of charge voltage and current curves, the pipeline engineers 30 features, performs automatic feature selection and calibrates the algorithms. When deployed on cells operated under the fast-charging protocol, the best model achieves a root-mean-squared error of 0.45%. This work provides insights into the design of scalable data-driven models for battery SOH estimation, emphasizing the value of confidence bounds around the prediction. The pipeline methodology combines experimental data with machine learning modelling and could be applied to other critical components that require real-time estimation of SOH. ...
Journal article (2021) - Maizura Mokhtar, Valentin Robu, David Flynn, Ciaran Higgins, Jim Whyte, Caroline Loughran, Fiona Fulton
The energy landscape for the Low-Voltage (LV) networks is undergoing rapid changes. These changes are driven by the increased penetration of distributed Low Carbon Technologies, both on the generation side (i.e. adoption of micro-renewables) and demand side (i.e. electric vehicle charging). The previously passive ‘fit-and-forget’ approach to LV network management is becoming increasing inefficient to ensure its effective operation. A more agile approach to operation and planning is needed, that includes pro-active prediction and mitigation of risks to local sub-networks (such as risk of voltage deviations out of legal limits). The mass rollout of smart meters (SMs) and advances in metering infrastructure holds the promise for smarter network management. However, many of the proposed methods require full observability, yet the expectation of being able to collect complete, error free data from every smart meter is unrealistic in operational reality. Furthermore, the smart meter (SM) roll-out has encountered significant issues, with the current voluntary nature of installation in the UK and in many other countries resulting in low-likelihood of full SM coverage for all LV networks. Even with a comprehensive SM roll-out privacy restrictions, constrain data availability from meters. To address these issues, this paper proposes the use of a Deep Learning Neural Network architecture to predict the voltage distribution with partial SM coverage on actual network operator LV circuits. The results show that SM measurements from key locations are sufficient for effective prediction of the voltage distribution, even without the use of the high granularity personal power demand data from individual customers. ...
Journal article (2021) - Sonam Norbu, Benoit Couraud, Valentin Robu, Merlinda Andoni, David Flynn
The trend of decentralization of energy services has given rise to community energy systems. These energy communities aim to maximize the self-consumption of local renewable energy generated and stored in assets that are typically connected to low-voltage (LV) distribution networks. Energy community schemes often involve jointly owned assets such as community-owned solar photo-voltaic panels (PVs), wind turbines and/or shared battery storage. This raises the question of how these assets should be controlled in real-time, and how the energy outputs from these jointly owned assets should be shared fairly among heterogeneous community members. Crucially, such real-time control and fair sharing of energy must also consider the technical constraints of the community, such as the local LV network characteristics, voltage limits and power ratings of electric cables and transformers. In this paper, we design and analyze a heuristic-based battery control algorithm that considers the influence of battery life degradation, and the resultant increase in local renewable energy consumption within local operating constraints of the LV network. We provide a model that first studies the techno-economic benefits of community-owned versus individually-owned energy assets considering the network/grid constraints. Then, using the methodology and principles from cooperative game theory, we propose a redistribution model for benefits in a community based on the marginal contribution of each household. The results from our study demonstrate that the redistribution mechanism is fairer and computationally tractable compared to the existing state-of-the-art methods. Thus, our methodology is more scalable with respect to modeling the economic sharing of joint assets in community energy systems. ...
Conference paper (2021) - Christie Etukudor, Valentin Robu, Wolf Gerrit Fruh, David Flynn, Hope Orovwode
Off-grid PV systems are providing critical access to energy services for millions of people throughout the globe. However, optimum sizing of these PV systems still poses a challenge, as inadequate system sizing could result in low system reliability and/or high cost of electricity generated. This paper presents a hybrid method of sizing off-grid PV systems for undefined electricity consumption. It then compares this sizing with off-grid PV systems installed in Nigeria - ranked the most populous electricity-deficit country in the world. The yields of the installed off-grid PV systems are also simulated for four major cities in Nigeria. Results show that for the over 1.5MWp of off-grid PV systems installed in the country, there is a potential 1.11 - 3.04 MWh of unutilised surplus electricity, which can supply 2hours of green electricity to at least 2, 000 Tier-2 households during peak demand in the dry hot season. Thus, our hybrid model provides design and operational insight to off-grid PV system optimization. ...
Journal article (2021) - Ioannis Antonopoulos, Valentin Robu, Benoit Couraud, David Flynn
Recent years have seen an increasing interest in Demand Response (DR), as a means to satisfy the growing flexibility needs of modern power grids. This increased flexibility is required due to the growing proportion of intermittent renewable energy generation into the energy mix, and increasing complexity in demand profiles from the electrification of transport networks. Currently, less than 2% of the global potential for demand-side flexibility is currently utilised, but a more widespread adoption of residential consumers as flexibility resources can lead to substantially higher utilisation of the demand-side flexibility potential. In order to achieve this target, acquiring a better understanding of how residential DR participants respond in DR events is essential – and recent advances in novel machine learning and statistical AI provide promising tools to address this challenge. This study provides an in-depth analysis of how residential customers have responded in incentive-based DR, utilising household-related data from a large-scale, real-world trial: the Smart Grid, Smart City (SGSC) project. Using a number of different machine learning approaches, we model the relationship between a household’s response and household-related features. Moreover, we examine the potential effects of households’ features on the residential response behaviour, and highlight a number of key insights which raise questions about the reported level of consumers’ engagement in DR schemes, and the motivation for different customers’ response level. Finally, we explore the temporal structure of the response – and although we found no supporting evidence of DR responders learning over time for the available data from this trial, the proposed methodologies could be used for longer-term longitudinal DR studies. Our study concludes with a broader discussion of our findings and potential paths for future research in this emerging area. ...
Journal article (2021) - Daniel Mitchell, Jamie Blanche, Osama Zaki, Joshua Roe, Leo Kong, Samuel Harper, Valentin Robu, Theodore Lim, David Flynn
To reduce Operation and Maintenance (OM) expenditure on offshore wind farms, wherein 80% of the cost relates to deploying personnel, the offshore wind sector looks to advances in Robotics and Artificial Intelligence (RAI) for solutions. Barriers to residential Beyond Visual Line of Sight (BVLOS) autonomy as a service, include operational challenges in run-time safety compliance, reliability and resilience, due to the complexities of dealing with known and unknown risk in dynamic environments. In this paper we incorporate a Symbiotic System Of Systems Approach (SSOSA) that uses a Symbiotic Digital Architecture (SDA) to provide a cyber physical orchestration of enabling technologies. Implementing a SSOSA enables Cooperation, Collaboration and Corroboration (C3), as to address run-time verification of safety, reliability and resilience during autonomous missions. Our SDA provides a means to synchronize distributed digital models of the robot, environment and infrastructure. Through the coordinated bidirectional communication network of the SDA, the remote human operator has improved visibility and understanding of the mission profile. We evaluate our SSOSA in an asset inspection mission within a confined operating environment. Demonstrating the ability of our SSOSA to overcome safety, reliability and resilience challenges. The SDA supports lifecycle learning and co-evolution with knowledge sharing across the interconnected systems. Our results evaluate both sudden and gradual faults, as well as unknown events, that may jeopardize an autonomous mission. Using distributed and coordinated decision making, the SSOSA enhances the analysis of the mission status, which includes diagnostics of critical sub-systems within the resident robot. This evaluation demonstrates that the SSOSA provides enhanced run-time operational resilience and safety compliance to BVLOS autonomous missions. The SSOSA has the potential to be a highly transferable methodology to other mission scenarios and technologies, providing a pathway to implementing scalable autonomy as a service. ...
Journal article (2015) - M.M. de Weerdt, Sebastian Stein, Enrico Gerding, Valentin Robu, Nick Jennings
This paper introduces a novel intention-aware routing system (IARS) for electric vehicles. This system enables vehicles to compute a routing policy that minimizes their expected journey time while considering the policies, or intentions, of other vehicles. Considering such intentions is critical for electric vehicles, which may need to recharge en route and face potentially significant queueing times if other vehicles choose the same charging stations. To address this, the computed routing policy takes into consideration predicted queueing times at the stations, which are derived from the current intentions of other electric vehicles. The efficacy of IARS is demonstrated through simulations using realistic settings based on real data from The Netherlands, including charging station locations, road networks, historical travel times, and journey origin-destination pairs. In these settings, IARS is compared with a number of state-of-the-art benchmark routing algorithms and achieves significantly lower average journey times. In some cases, IARS leads to an over 80% improvement in waiting times at charging stations and a more than 50% reduction in overall journey times. ...
Journal article (2012) - Valentin Robu, Lonneke Mous, Han La Poutre
We propose a priced options model for solving the exposure problem of bidders with valuation synergies participating in a sequence of online auctions. We consider a setting in which complementary-valued items are offered sequentially by different sellers, who have the choice of either selling their item directly or through a priced option. In our model, the seller fixes the exercise price for this option, and then sells it through a first-price auction. We analyze this model from a decision-theoretic perspective and we show, for a setting where the competition is formed by local bidders (which desire a single item), that using options can increase the expected profit for both sides. Furthermore, we derive the equations that provide minimum and maximum bounds between which the bids of the synergy buyer are expected to fall, in order for both sides of the market to have an incentive to use the options mechanism. Next, we perform an experimental analysis of a market in which multiple synergy buyers are active simultaneously. We show that, despite the extra competition, some synergy buyers may benefit, because sellers are forced to set their exercise prices for options at levels which encourage participation of all buyers. ...