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The costs incurred by cloud providers towards operating their data centers are often determined in large part by their peak demands. The pricing schemes currently used by cloud providers to recoup these costs from their tenants, however, do not distinguish tenants based on their contributions to the cloud's overall peak demand. Using the concrete example of peak-based pricing as employed by many electric...
In order to study the impact of dynamic demand response in the future smart grid, we examine in an abstract framework how a tradeoff between efficiency and risk arises under different market architectures. We first examine the system performance under noncooperative and cooperative market architectures. The statistics of the stationary aggregate demand processes show that, although the noncooperative...
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