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While demand response has achieved promising results on making the power grid more efficient and reliable, the additional dynamics and flexibility brought by demand response also increase the uncertainty and complexity of the centralized load forecast. In this paper, the authors propose a game theoretic demand response scheme that can transform the traditional centralized load prediction structure into a distributed load prediction system by the participation of customers. Moreover, since customers are generally rational and thus naturally selfish, they may cheat if cheating can improve their payoff.
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