Chaos 30, 013153 (2020); https://doi.org/10.1063/1.5122313
Iacopo Iacopini, Benjamin Schäfer, Elsa Arcaute, Christian Beck, and Vito Latora
The electricity system is in the midst of large transformations, and new business models have emerged quickly to facilitate new modes of operation of the electricity supply. The so-called demand response seeks to coordinate demand from a large number of users through incentives, which are usually economic such as variable pricing tariffs. Here, we propose a simple mathematical framework to model consumer behaviors under demand response. Our model considers at the same time social influence and customer benefits to opt into and stay within new control schemes. In our model, information about the existence of a contract propagates through the links of a social network, while the geographic proximity of clusters of adopters influences the likelihood of participation by decreasing the likelihood of opting out. The results of our work can help to make informed decisions in energy demand management.