Two-Stage Mechanism Design for Electric Vehicle Charging with Day-Ahead Reservations

Fuente: arXiv
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Main Authors: Su, Pan-Yang, Ju, Yi, Moura, Scott, Sastry, Shankar
Format: Preprint
Published: 2025
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author Su, Pan-Yang
Ju, Yi
Moura, Scott
Sastry, Shankar
author_facet Su, Pan-Yang
Ju, Yi
Moura, Scott
Sastry, Shankar
contents We propose a general two-period model where electrical vehicles (EVs) can reserve charging sessions in the day-ahead market and swap them in the real-time market. Under the model, we explore several candidate mechanisms for running the two markets, compared using several normative properties such as incentive compatibility, efficiency, reservation awareness, and budget balance. Specifically, reservation awareness is the only property coupling the two markets and dictates that an EV will not get a lower utility by joining the real-time market. Focusing on the real-time market, we show that two variants of the classical Vickrey-Clarke-Groves (VCG) mechanism do not satisfy all the proposed properties; specifically, one is not reservation-aware, while the other is not budget-balanced. Moreover, we show that no mechanism satisfies some combinations of the properties. Then, we propose to use a posted-price mechanism to resolve the issue, which turns out to be the dynamic pricing mechanism adopted in many real-world systems. The proposed mechanism has no efficiency guarantee but satisfies all the other properties. To improve efficiency, we propose to use a VCG auction in the day-ahead market that guides the reserve prices in the real-time market. When EVs' valuations in the two markets are highly correlated, the proposed approach results in highly efficient outcomes.
format Preprint
id arxiv_https___arxiv_org_abs_2509_00270
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Two-Stage Mechanism Design for Electric Vehicle Charging with Day-Ahead Reservations
Su, Pan-Yang
Ju, Yi
Moura, Scott
Sastry, Shankar
Systems and Control
Computer Science and Game Theory
Multiagent Systems
General Economics
Economics
91A80, 90B06
We propose a general two-period model where electrical vehicles (EVs) can reserve charging sessions in the day-ahead market and swap them in the real-time market. Under the model, we explore several candidate mechanisms for running the two markets, compared using several normative properties such as incentive compatibility, efficiency, reservation awareness, and budget balance. Specifically, reservation awareness is the only property coupling the two markets and dictates that an EV will not get a lower utility by joining the real-time market. Focusing on the real-time market, we show that two variants of the classical Vickrey-Clarke-Groves (VCG) mechanism do not satisfy all the proposed properties; specifically, one is not reservation-aware, while the other is not budget-balanced. Moreover, we show that no mechanism satisfies some combinations of the properties. Then, we propose to use a posted-price mechanism to resolve the issue, which turns out to be the dynamic pricing mechanism adopted in many real-world systems. The proposed mechanism has no efficiency guarantee but satisfies all the other properties. To improve efficiency, we propose to use a VCG auction in the day-ahead market that guides the reserve prices in the real-time market. When EVs' valuations in the two markets are highly correlated, the proposed approach results in highly efficient outcomes.
title Two-Stage Mechanism Design for Electric Vehicle Charging with Day-Ahead Reservations
topic Systems and Control
Computer Science and Game Theory
Multiagent Systems
General Economics
Economics
91A80, 90B06
url https://arxiv.org/abs/2509.00270