Economics of Dynamic Pricing in a Reputation Brokered Agent Mediated Marketplace
We present a framework to study the microeconomic effects in a reputation brokered Agent mediated Knowledge Marketplace, when we introduce dynamic pricing algorithms. We study the market with computer simulations of multiagent interactions. In this marketplace, the seller reputations are updated in a collaborative fashion based on the performance of the user in the delegated tasks. To the best of our knowledge, this is the first agent mediated marketplace where the agents use dynamic pricing based on “dynamically” updated reputations. The framework can be used to investigate the different equilibria reached, based on the level of intelligence of the selling agents, the level of price-importance elasticity of the buying agents, and the level of unemployment in the marketplace. Preliminary experiments addressing these issues are presented.
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