Profit-Driven Matching in E-Marketplaces: Trading Composable Commodities

  • Apostolos Dailianas
  • Jakka Sairamesh
  • Vibby Gottemukkala
  • Anant Jhingran
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 1788)


We are witnessing the dawn and emergence of anew breed of businesses over the Internet, such as electronic intermediaries, which are not only reducing search costs, but also aiming to create efficient markets for businesses and consumers to conduct commerce over the Internet. Among these intermediaries, Electronic Marketplaces are emerging to provide value by streamlining commerce among diverse buyers and sellers and creating fair trading environments.

We envision that these E-Marketplaces will play a very significant role in matching buyers and sellers and increasing market efficiency by satisfying a variety of objectives ranging from pure profit maximization to guaranteeing a target market liquidity. In this paper, we consider a specific E-Marketplace for trading soft composable commodities such ass bandwidth and application quality of service, where buyers and sellers submit bids and offers to the marketplace to trade bandwidth products. We develop and analyze the performance of novel computationally efficient matching heuristics. The experimental results demonstrate that these heuristics perform as well as the exact computationally intensive matching algorithms.


Electronic Marketplaces Electronic Trading Systems Trading Models Trading Objectives Trading Algorithms Electronic Commerce Inter- mediaries Bandwidth Markets 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Bailey, J.P., Bakos, Y.: An Exploratory Study of the Emerging Role of Electronic Intermediaries. International Journal of Electronic Commerce 1(3) (Spring 1997)Google Scholar
  2. 2.
    Bakos, Y.: The Emerging Role of Electronic Marketplaces on the Internet. Journal of CACM (August 1998)Google Scholar
  3. 3.
    Elmaghraby, W.: Capturing Non-Convexities in a Multi-Unit Auction: An Application to Electricity Markets. Submitted to Management Science (September 1998)Google Scholar
  4. 4.
    Guttman, R., Moukas, A., Maes, P.: Agent Mediated Electronic Commerce: A Survey. Knowledge Engineering Review (June 1998)Google Scholar
  5. 5.
    Ilic, M.D.: Price Dynamics in the Deregulated California Energy Market. In: Energy Laboratory Consortium Workshop, Cambridge, MA, February 4 (1999)Google Scholar
  6. 6.
    Sairamesh, J., Kephart, J.: Dynamics of Price and Quality Differentiation in Information and Computation Markets. In: Proceedings of the ICE 1998, October 25-28 (1998)Google Scholar
  7. 7.
    Sairamesh, J., Codella, C.: NetBazaar: Networked Electronic Markets. In: Proceedings of the 7th Delos Workshop on Electronic Commerce. Springer, Heidelberg (1998)Google Scholar
  8. 8.
    Tirole, J.: The Theory of Industrial Organization. The MIT Press, Cambridge (1995)Google Scholar
  9. 9.
    Wallman, S.M.H.: Technology takes to Securities Trading. IEEE Spectrum (February 1997)Google Scholar
  10. 10.
    Visudhiphan, P., Ilic, M.D.: Dynamic Games-based Modeling of Electricity Markets. In: Proceedings of the IEEE PES Winter Meeting, New York, NY (January 1999)Google Scholar
  11. 11.
  12. 12.
    Band-X: The bandwidth exchange,
  13. 13.
    NetBuy: Electronic Marketplace for Electronic Components,
  14. 14.
    NECX: Electronic Marketplace for Electronic Components,
  15. 15.
    ALTRANET: Energy Exchange,
  16. 16.
    Chemdex: Electronic Marketplace for Chemical Products,

Copyright information

© Springer-Verlag Berlin Heidelberg 2000

Authors and Affiliations

  • Apostolos Dailianas
    • 1
  • Jakka Sairamesh
    • 1
  • Vibby Gottemukkala
    • 1
  • Anant Jhingran
    • 1
  1. 1.IBM T. J. Watson Research, HawthorneNew York

Personalised recommendations