A macroeconomic model for inflation control in market-based grid environment

Abstract

Providers and consumers as two main elements in economic grid environment try to reach the maximum efficiency of the environment. Providers attempt to obtain the maximum income using a suitable pricing mechanism. Consumers also seek resources with the minimum cost. Due to the autonomous nature of grid environment, providers may price their resources without taking the consumers’ conditions into account. Therefore, consumers face budget deficit for buying their required resources. So, the number of unused resources will increase. As a result, consumers’ satisfaction rate and providers’ efficiency will decrease. This issue leads to the inefficiency of market-based economic grid environment. In this study, a model is presented based on the macroeconomics concepts in order for the providers and consumers to price and budget, respectively, considering the expected rate of inflation. The obtained results demonstrate the usefulness of this model.