Elsevier

Automatica

Volume 27, Issue 4, July 1991, Pages 743-747
Automatica

Brief paper
Market-clearing prices in coupled, dynamic systems

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Abstract

A standard, hierarchical control formulation is used for the economic problem of price coordination of subsystems connected by a general coupling system. With this formulation, where the coordinating price for a given input or output a priori may be different for each subsystem, we determine conditions on the coupling system whereby the coordinating prices are the same for all subsystems. We show that the coupling system does not need to be specialized to the constraint that the sum of the outputs minus the sum of the inputs (the excess supply) be zero. On the other hand, a coupling system with symmetrically appearing input-output vectors is not restrictive enough. Rather, there exists a common, coordinating price vector for all subsystems if the coupling system is a general function of excess supply.

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Cited by (1)

The original version of this paper was not presented at any IFAC meeting. This paper was recommended for publication in revised form by Associate Editor T. Başar under the direction of Editor A. P. Sage.

This work was partially done while the author was with Harvard University and Massachusetts Institute of Technology.

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