Optimizing Demand-Side Management (DSM) for energy consumption in smart grids has made progress, but it still faces challenges in grid resilience, energy sustainability, and consumer empowerment. Recent developments have led to enhanced demand response mechanisms that are both dynamic and automated, enabling quicker and more efficient responses to grid conditions. The use of a game-theoretic approach in demand response programs involves incorporating game design and mechanics to motivate participants and encourage them to change their energy consumption habits. Energy scheduling is optimized using the Nash equilibrium approach. This leads to the adoption of more energy-efficient behaviors, such as adjusting thermostat settings, using energy-efficient appliances, and reducing standby power consumption.

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