Smart Markets for Real-Time Allocation of Multi-Product Resources: The Case of Shared Electric Vehicles

55 Pages Posted: 23 Mar 2020

See all articles by Micha Kahlen

Micha Kahlen

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM)

Karsten Schroer

University of Cologne - Cologne Institute for Information Systems (CIIS); University of Cologne - Institute of Energy Economics

Wolfgang Ketter

University of Cologne - Institute of Energy Economics; Erasmus University Rotterdam (EUR) - Department of Technology and Operations Management; Erasmus Research Institute of Management (ERIM)

Alok Gupta

University of Minnesota - Twin Cities - Carlson School of Management

Date Written: September 1, 2019

Abstract

Motivated by the deep transformation of the transportation sector toward electric and shared mobility, this research develops a decision support tool that enables real-time allocation of shared electric vehicles (SEVs) to either the rental market, or - aggregated as a virtual power plant (VPP) - to the electricity market. This multi-purposing of SEVs beyond the traditional scope of mobility services can boost utilization and profitability for fleet operators while also facilitating the integration of variable rate renewable energy sources. We abstract this setting to the general problem of real-time multi-product resource allocation via smart markets. Due to a lack of suitable techniques in the literature, we develop our own general approach that leverages highly digitized real-time markets and intelligent agents to enable dynamic multi-product resource allocation. Agents continuously evaluate which markets are most attractive and strategically and iteratively place bids in the respective markets on the resource owner's behalf until all resources have been committed for a specific period. We contribute a general framework that provides a blueprint for similar multi-product resource allocation settings and demonstrate its efficacy in the domain of SEV fleets by developing tailored analytics and machine learning based solution approaches along the dimensions of this framework.

Keywords: Smart Markets, Intelligent Agents, Electric Vehicles, Virtual Power Plants

Suggested Citation

Kahlen, Micha and Schroer, Karsten and Ketter, Wolfgang and Gupta, Alok, Smart Markets for Real-Time Allocation of Multi-Product Resources: The Case of Shared Electric Vehicles (September 1, 2019). Available at SSRN: https://ssrn.com/abstract=3544592 or http://dx.doi.org/10.2139/ssrn.3544592

Micha Kahlen

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Karsten Schroer

University of Cologne - Cologne Institute for Information Systems (CIIS) ( email )

Pohligstr. 1
Cologne, D-50969
Germany

University of Cologne - Institute of Energy Economics ( email )

Alte Wagenfabrik
Vogelsanger Strasse 321a
Cologne, 50827
Germany

Wolfgang Ketter (Contact Author)

University of Cologne - Institute of Energy Economics ( email )

Alte Wagenfabrik
Vogelsanger Strasse 321a
Cologne, 50827
Germany

HOME PAGE: http://ewi.uni-koeln.de/en/

Erasmus University Rotterdam (EUR) - Department of Technology and Operations Management ( email )

RSM Erasmus University
PO Box 1738
3000 DR Rotterdam
Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

HOME PAGE: http://www.rsm.nl/energy

Alok Gupta

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

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