Role of game theory in future decentralized energy frameworks

The success of future decentralized energy framework is heavily dependent on the active involvement of the participants who acts as an energy buyers or sellers in the energy market. To increase the active involvement of the participants in an energy market, the study of the participants’ behavior plays a vital role. For this purpose, game theory puts a helping hand to deeply analyze the strategical behavior of the participants in the energy market. In this chapter, we first define and explain the basic game theory model, then classify the game types based on the way of working. After this, we discuss the different types of game based on the participants’ involvement such as cooperative, noncooperative, and evolutionary games. Further the uses of each type of game in future decentralized energy framework have been widely explored.