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Policy Search through Adaptive Function Approximation for Bidding in TAC SCM

  • Kyriakos C. Chatzidimitriou
  • Andreas L. Symeonidis
  • Pericles A. Mitkas
Part of the Lecture Notes in Business Information Processing book series (LNBIP, volume 136)

Abstract

Agent autonomy is strongly related to learning and adaptation. Machine learning models generated through the use of historical data or current environmental signals, provide agents with the necessary decision-making and generalization capabilities in competitive, dynamic, partially observable and stochastic environments. In this work, we discuss learning and adaptation in the context of the TAC SCM game. We apply a variety of machine learning and computational intelligence methods for generating the most efficient sales component of the agent, dealing with customer orders and production throughput. Along with utility maximization and bid acceptance probability estimation methods, we evaluate regression trees, particle swarm optimization, heuristic control and policy search via adaptive function approximation in order to build an efficient, near-real time, bidding mechanism. Results indicate that a suitable reinforcement learning setup coupled with the power of adaptive function approximation techniques is a good candidate for enabling high performance strategies.

Keywords

adaptive function approximation trading agent competition supply chain management echo state networks neuroevolution of augmented reservoirs 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  • Kyriakos C. Chatzidimitriou
    • 1
    • 2
  • Andreas L. Symeonidis
    • 1
    • 2
  • Pericles A. Mitkas
    • 1
    • 2
  1. 1.Department of Electrical and Computer EngineeringAristotle University of ThessalonikiGreece
  2. 2.Informatics and Telematics InstituteCentre for Research and Technology HellasGreece

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