In this paper, we addressed how pricing strategy and gametheoretic
optimization techniques can be used to optimize the
demand response in the smart grid. The utility company sets
the price of electricity for different hours and communicates
it to the users. When the users receive the price information
from the utility company, they maximize their utility functions
independently, contributing to the global optimization.
Providing a scalable and distributive solution is the main
advantage of applying game theory techniques to demand-side
management problem. Our simulations results indicate that the
users can reduce their electricity bills by 25% when they use
the proposed scheduler to react to DAP pricing strategy.