**3. Non-Cooperative Game for Group** *N* **Participating in Day-Ahead Bidding**

In this section, we focus on the model formulation for residential communities who participate in DR. According to Figure 1, all communities in group *N* have to take part in the day-ahead bidding market. Generally, the game-theoretic approach can be divided into a cooperative game and non-cooperative game [18,29]. In this paper, we assume that each community is only concerned about self-interest, and the non-cooperative game approach is employed to optimize communities' bidding strategy.
