LAUSR

Recently, there has been significant interest in devising market-based energy trading mechanisms in an efficient and economical way. For instance, Tushar et al. [1] investigated a discriminate pricing scheme for energy trading using cake cutting game. In [2], the authors proposed to use a distributor to gather surplus energy and distribute it to consumers based on historical contribution levels. A distributed energy trading mechanism was presented in [3], which achieved proportional sharing on trading participants. Readers can refer to a recent survey [4] for a comprehensive overview of energy trading. Nevertheless, most of the above schemes oversimplify models, omitting practical issues, e.g., transmission losses [5] and wheeling cost [6]. The way how these practical factors influence trading behaviors of both sides of supply and demand, and especially the impact of transmission losses and their influence levels, are largely unexplored. This observation motivates the current study.