Truthful and Trustworthy IoT AI Agents via Immediate-Penalty Enforcement under Approximate VCG Mechanisms
On the map: Deep reinforcement learning methods → RL for energy, networks and operations
Abstract (arXiv)
The deployment of autonomous AI agents in Internet of Things (IoT) energy systems requires decision-making mechanisms that remain robust, efficient, and trustworthy under real-time constraints and imperfect monitoring. While reinforcement learning enables adaptive prosumer behaviors, ensuring economic consistency and preventing strategic manipulation remain open challenges, particularly when sensing noise or partial observability reduces the operator's ability to verify actions. This paper introduces a trust-enforcement framework for IoT energy trading that combines an approximate Vickrey-Clarke-Groves (VCG) double auction with an immediate one-shot penalty. Unlike reputation- or history-based approaches, the proposed mechanism restores truthful reporting within a single round, even when allocation accuracy is approximate and monitoring is noisy. We theoretically characterize the incentive gap induced by approximation and derive a penalty threshold that guarantees truthful bidding under bounded sensing errors. To evaluate learning-enabled prosumers, we embed the mechanism into a multi-agent reinforcement learning environment reflecting stochastic generation, dynamic loads, and heterogeneous trading opportunities. Experiments show that improved allocation accuracy reduces deviation incentives, the required penalty matches analytical predictions, and learned bidding behaviors remain stable and interpretable despite imperfect monitoring. These results demonstrate that lightweight penalty designs can reliably align strategic IoT agents with socially efficient energy-trading outcomes.
Key facts. No citing papers in the map yet (data through 14 Oct 2026). Placed in RL for energy, networks and operations, one of 15 directions in Deep reinforcement learning methods. Builds on 6 of its 50 references that are in the map. First posted on arXiv 29 Nov 2025.
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References · 6
- 2017Proximal Policy Optimization Algorithmscited by 15,215
- 2017Multi-Agent Actor-Critic for Mixed Cooperative-Competitive Environmentscited by 1,558
- 2019Multi-Agent Reinforcement Learning: A Selective Overview of Theories and Algorithmscited by 567
- 2018A Survey and Critique of Multiagent Deep Reinforcement Learningcited by 177
- 2020Peer-to-Peer Trading in Electricity Networks: An Overviewcited by 6
- 2024Neural Double Auction Mechanismcited by 1
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- 2025Deep Reinforcement Learning-Based Bidding Strategies for Prosumers Trading in Double Auction-Based Transactive Energy Market