Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Bidding in Smart Grid PDAs: Theory, Analysis and Strategy (Extended
  Version)   Periodic Double Auctions (PDAs) are commonly used in the real world for
trading, e.g. in stock markets to determine stock opening prices, and energy
markets to trade energy in order to balance net demand in smart grids,
involving trillions of dollars in the process. A bidder, participating in such
PDAs, has to plan for bids in the current auction as well as for the future
auctions, which highlights the necessity of good bidding strategies. In this
paper, we perform an equilibrium analysis of single unit single-shot double
auctions with a certain clearing price and payment rule, which we refer to as
ACPR, and find it intractable to analyze as number of participating agents
increase. We further derive the best response for a bidder with complete
information in a single-shot double auction with ACPR. Leveraging the theory
developed for single-shot double auction and taking the PowerTAC wholesale
market PDA as our testbed, we proceed by modeling the PDA of PowerTAC as an
MDP. We propose a novel bidding strategy, namely MDPLCPBS. We empirically show
that MDPLCPBS follows the equilibrium strategy for double auctions that we
previously analyze. In addition, we benchmark our strategy against the baseline
and the state-of-the-art bidding strategies for the PowerTAC wholesale market
PDAs, and show that MDPLCPBS outperforms most of them consistently.

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The categories of this paper are: chem-ph
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The categories of this paper are: q-alg
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The categories of this paper are: stat
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The categories of this paper are: mtrl-th
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The categories of this paper are: atom-ph
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The categories of this paper are: nucl-th
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The categories of this paper are: hep-lat
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The categories of this paper are: physics
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The categories of this paper are: alg-geom
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The categories of this paper are: dg-ga
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The categories of this paper are: hep-th
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The categories of this paper are: supr-con
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The categories of this paper are: plasm-ph
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The categories of this paper are: gr-qc
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The categories of this paper are: chao-dyn
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The categories of this paper are: adap-org