Research Paper#Energy Markets, Automated Market Makers, AI, Economics🔬 ResearchAnalyzed: Jan 3, 2026 17:13
Automated Market Making for Energy Sharing
Published:Dec 30, 2025 19:33
•1 min read
•ArXiv
Analysis
This paper proposes a novel application of Automated Market Makers (AMMs), typically used in decentralized finance, to local energy sharing markets. It develops a theoretical framework, analyzes the market equilibrium using Mean-Field Game theory, and demonstrates the potential for significant efficiency gains compared to traditional grid-only scenarios. The research is significant because it explores the intersection of AI, economics, and sustainable energy, offering a new approach to optimize energy consumption and distribution.
Key Takeaways
- •Applies AMMs, a concept from decentralized finance, to energy sharing markets.
- •Develops an axiomatic theory and analyzes market equilibrium using Mean-Field Game.
- •Demonstrates potential for significant efficiency gains in energy consumption.
- •Offers a budget-balanced and ex-ante efficient mechanism.
- •Uses data from the Paris administrative region for numerical experiments.
Reference
“The prosumer community can achieve gains from trade up to 40% relative to the grid-only benchmark.”