Enhancing Bidding Strategies in CDAs by Adaptive Judgement of Price Acceptability
Continuous Double Auctions (CDAs) and agent technology provide great opportunities for market institutions to carry out real-world trading quickly and conveniently. There are several bidding strategies in the literature for agents in CDAs to employ, which achieve good performance. However, almost all of these strategies do not judge whether a price is acceptable before they calculate their own asks or bids. Experiment results have demonstrated that the judgement of price acceptability can enhance the performance of agents. In order to enable agents to adopt the judgement of price acceptability in dynamic CDA markets, we propose an adaptive mechanism. The core of the adaptive mechanism is eagerness, which enables agents to explore the realtime supply and demand relationship and adjust the thresholds of price acceptability accordingly. Experiment results show that agents adopting the adaptive mechanism remarkably outperform the agents without the mechanism.
KeywordsAdaptive Mechanism Reservation Price Bidding Strategy Transaction Price Online Auction
Unable to display preview. Download preview PDF.
- 1.Xiong, G., Hashiyama, T., Okuma, S.: An electricity supplier bidding strategy through q-learning. In: Power Engineering Society Summer Meeting, pp. 1516–1521 (2002)Google Scholar
- 3.Wurman, P.R., Wellman, M.P., Walsh, W.E.: The michigan internet auctionbot: A configurable auction server for human and software agents. In: Autonomous Agents 1998, Minneapolis MN USA, pp. 301–308 (1998)Google Scholar
- 4.He, M., Leung, H., Jennings, N.R.: A fuzzy-logic based bidding strategy for au- tonomous agents in continuous double auctions. IEEE Transactions on Knowledge and Data Engineering 15 (2003)Google Scholar
- 6.Cliff, D., Bruten, J.: Minimal-intelligence agents for bargaining behaviors in market-based environments. HP Laboratories Bristol (1997)Google Scholar
- 7.Preist, C., van Tol, M.: Adaptive agents in a persistent shout double auction. In: ICE 1998, Charleston SC USA, pp. 11–18 (1998)Google Scholar
- 9.Tesauro, G., Das, R.: High-performance bidding agents for the continuous double auction. In: ACM Conference on Electronic Commerce, pp. 206–209 (2001)Google Scholar
- 10.Park, S., Durfee, E.H., Birmingham, W.P.: An adaptive agent bidding strategy based on stochastic modeling. In: Autonomous Agents 1999, Seattle USA, pp. 147–153 (1999)Google Scholar
- 11.Tesauro, G., Bredin, J.L.: Strategic sequential bidding in auctions using dynamic programming. In: AAMAS 2002, Bologna, Italy (2002)Google Scholar
- 12.Ma, H., Leung, H.: The effect of price acceptability to agents in cdas. Technical Report of Dept. of CSE, Chinese University of Hong Kong (2005)Google Scholar
- 13.Sim, K.: A market-driven model for designing negotiation agents. Computational Intelligence 18 (2002)Google Scholar
- 14.Dumas, M., Aldred, L., Governatori, G., Hofstede, A., Russell, N.: A probabilistic approach to automated bidding in alternative auctions. In: WWW 2002, Hawaii, USA, pp. 99–108 (2002)Google Scholar
- 15.Ma, H., Leung, H.: An adaptive attitude bidding strategy for agents in continuous double auctions. In: Proceedings of EEE 2005, Hong Kong, China (2005)Google Scholar