Sensor Validation of Cooperation Emergence with Agent Interaction Rules in Decentralized Energy Markets

Abstract

The transition toward decentralized energy markets introduces paradigm-shifting opportunities for localized power generation, peer-to-peer energy trading, and enhanced grid resilience. Central to this transition is the deployment of autonomous software agents that represent human prosumers in negotiating and executing energy transactions. However, establishing trust and fostering cooperation among self-interested agents in a trustless environment remains a critical challenge. Purely cyber-based reputation systems often fail to account for discrepancies between digital agreements and physical energy delivery. This paper investigates the emergence of cooperative behavior among autonomous agents when their interaction rules are explicitly coupled with physical sensor validation evidence. By integrating smart meter data as ground-truth evidence into the agent evaluation mechanisms, we propose a cyber-physical feedback loop that penalizes defection and rewards compliance. A comprehensive methodological framework is developed to model agent interactions within a simulated decentralized energy market, incorporating various behavioral profiles including cooperative, defective, and adaptive agents. The findings demonstrate that introducing physical sensor validation significantly accelerates the emergence of systemic cooperation, reduces the frequency of unfulfilled contracts, and enhances overall market efficiency. Furthermore, the resilience of the market against collusive malicious behaviors is vastly improved when interaction rules are parameterized by empirical physical evidence rather than solely by digital transaction histories.