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Statistical Mechanics: A Possible Model for Market-based Electric Power Control

David P. Chassin
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Abstract

Statistical mechanics provides a useful analog for understanding the behavior of complex adaptive systems, including electric power markets and the power systems they intend to govern. Market-based control is founded on the conjecture that the regulation of complex systems based on price-mediated strategies (e.g., auctions, markets) results in an optimal allocation of resources and emergent optimal system control. This paper discusses the derivation and some illustrative applications of a first-principles model of market-based system dynamics based on strict analogies to statistical mechanics.

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David P. Chassin. 2003-09-30. Statistical Mechanics: A Possible Model for Market-based Electric Power Control. https://arxiv.org/abs/nlin/0306046

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