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h i g h l i g h t s Demand response puts pressure on energy providers to consider new pricing schemes. We introduce cooperative demand response. It can cut energy bills by 10%. A capacity-pricing component can encourage reductions in peak demand. Cooperative demand response can benefit consumers and energy providers alike.doi:10.1016/j.apenergy.2016.07.105 fatcat:3apauuwbtzgynflbsyyrwn7kpy