# Demand-Response Control in Smart Grids
## 6 Theoretical and Experimental Comparison between Vickrey and Dutch Auctions
### Experimental Comparison between Vickrey and Dutch Auctions  
We have deployed the following strategies: Dutch, and Vickrey auctions. We ran simulations with 2, 4, 6, 8, 10, 12, 14, and 20 bidders. The number of auction rounds for Dutch was limited to ten, with each round having a one-minute timeout. The Vickrey auction had only one round.  
In this section, we estimate how much a transaction will cost in terms of time, messages, and bids. We also examine how these factors change in various scenarios where there are more consumer agents. Two examples are as follows:  
* In a demand-driven environment, there is more demand than the electricity in supply.
* In a supply-driven environment, there is more electricity provided than the demand.  
The time and the number of messages exchanged between these agents are all essential indicators.  
The testing results for the prototype are shown in Figures 6-9. Figures 6 and 7 (8 and 9 resp.) are related to demand-driven scenarios (resp. supply-driven scenario). Figures 6 and 8 show how the number of messages per transaction changes as the number of bidders grows. Figures 7 and 9 show how time per transaction changes as the number of bidders grows.  
well. However, in Vickrey auctions, the number of messages often increases linearly in a demand-driven world. Thus, the difference between Dutch and Vickrey auctions is becoming more and more important with the increasing number of bidders.  
_Time spent per transaction (Figure 7):_ As more agents join the system, more consumers participate in a demand-driven world. Therefore, the time per transaction increases. The number of bids and the time it takes for a buyer agent to execute a transaction rises. In Dutch auctions, more sent messages implies more time spent to execute a transaction. In Vickrey auctions, the time it takes to conduct a transaction also increases, but in a reasonable manner. It is clear that Vickrey auctions outperform Dutch auctions, especially whenever the number of bidders is becoming huge.  
Figure 6: Messages required to complete an auction as the number of bidders grows in a demand-driven scenario.  
auctions in terms of performance, as they are more efficient in terms of execution time and number of messages. In a supply-driven world, both have similar performance. The Dutch auction is preferred over the Vickrey auction, as Vickrey auctions can be manipulated by bidders who are aware of how they work. Dutch auctions are more equitable than Vickrey auctions, as all participants have an equal opportunity to bid on power at any price-point, whereas with a Vickrey auction, some participants may be disadvantaged due to their lack of knowledge or resources. Additionally, with a Dutch auction, all participants have an equal chance of winning the bid regardless of their initial bid price, whereas with a Vickrey auction, those who bid higher have an advantage over those who bid lower. Therefore, Dutch auctions are better than Vickrey auctions in situations where there is an abundance of power, and customers are willing to wait for lower prices. Additionally, Dutch auctions can be beneficial when producers want to ensure that all customers get access to power at fair market prices without having to compete with each other in an open bidding process.