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We study competition and cooperation among a group of storage units. We show that as the number of storages increases, the profit of storages approaches zero under Nash competition. We propose two ways in which storages can achieve non-zero profit and show that they are optimal in the sense that storages achieve the maximum possible profit. The first is a decentralized approach in which storages are exposed to artificial cost functions that incentivize them to behavior as a coalition. No private information needs to be exchanged between the storages to calculate the artificial function. The second is a centralized approach in which an aggregator coordinates and splits profits with storages in order to achieve maximum profit. We use Nashs axiomatic bargaining problem to model and predict the profit split between aggregator and storages.
The far-reaching consequences of ecological interactions in the dynamics of biological communities remain an intriguing subject. For decades, competition has been a cornerstone in ecological processes, but mounting evidence shows that cooperation doe
We study how storage, operating as a price maker within a market environment, may be optimally operated over an extended period of time. The optimality criterion may be the maximisation of the profit of the storage itself, where this profit results f
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The study aims to generate a map of the knowledge based on the research on topics related to governance and security, risks, competition and cooperation for the FDDI (Fudan Development Institute) proceedings publishing project: Reflections on Governa
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