Design and game-Theoretic analysis of community-Based market mechanisms in heat and electricity systems

•A Community-based market mechanism is introduced to empower heat and electricity prosumers to harness their flexibility at a local level.•The proposed energy management problem accounts for the complex technoeconomic characteristics of prosumers at the interface between heat and electricity systems.•Cooperative and non-cooperative game-theoretic tools are used to analyze the properties of the mechanism designed.•The analysis of various payment allocation mechanisms reveals that a nucleolus mechanism incentivizes prosumers to cooperate truthfully to achieve a social choice.