  This paper investigates interaction among residential electricity users and
utility company in a distribution network with the capability of two-way
communication provided by smart grid. The energy consumption scheduling of
electricity users is formulated as a game-theoretic problem within a group
where all players are not totally selfish. Considering altruistic behavior of
human decision-making, altruistic player action to other players actions can be
influenced by recognizing the well being of others. The proposed model captures
the empathy of electricity users in energy consumption scheduling and how this
behavior affect peak demand and electricity prices. Numerical results
demonstrate that both residential users and utility company can benefit through
the channel of empathy.
