In this module, theoretical concepts from game theory are prepared and presented with connections to the application in cyber-physical energy systems (CPES).

Fundamental concepts are discussed using easy-to-follow examples.

These are:

Game theory and decision theory
Interdependencies
Cooperative and non-cooperative game theory
Utility, discrete and continuous strategy, dominant strategy
Axioms of game theory
Theorems of game theory
Solution concepts for games, e.g. iterated elimination, backward induction
Multi-step and repeated games
Partial game perfection
Discont factor
Mechanims design, markets and auctions

In CPES-application examples, references are made to distributed artificial intelligence and multi-agent systems, strategy learning, and operating in markets in energy applications