Market Organizations for Controlling Smart Matter

Oliver Guenther, Tad Hogg and Bernardo A. Huberman

Dynamics of Computation Group
Xerox Palo Alto Research Center
Palo Alto, CA 94304
guenther@parc.xerox.com, hogg@parc.xerox.com, huberman@parc.xerox.com

Abstract

We present a market solution to the problem of maintaining a spatially extended physical system near an unstable configuration. Computational agents representing individual controllers bid to buy or sell power that is used to push the system to a desired unstable configuration. Simulation results show that the auction leads to a stable control of an otherwise unstable system by focussing the power in those parts of the system where is most needed. We also studied the effectiveness of different market organizations in achieving control, and we noticed that the nearest neighbor structure uses the least amount of power to control the unstable system while also capable of reducing the average displacement of the chain.
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