A risk-based bidding strategy for continuous double auctions

Perukrishnen Vytelingum, Rajdeep K. Dash, Esther David, Nicholas R. Jennings

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

33 Scopus citations

Abstract

We develop a novel bidding strategy that software agents can use to buy and sell goods in Continuous Double Auctions (CDAs). Our strategy involves the agent forming a bid or ask by assessing the degree of risk involved and making a prediction about the competitive equilibrium that is likely to be reached in the marketplace. We benchmark our strategy against two of the most common strategies for CDAs, namely the Zero-Intelligence and the Zero- Intelligence Plus strategies, and we show that our agents outperform these benchmarks. Specifically, our agents win in 100% of the simulations against the ZI agents and, on average, 75% of the games against the ZIP agents.

Original languageEnglish
Title of host publicationECAI 2004 - 16th European Conference on Artificial Intelligence, including Prestigious Applications of Intelligent Systems, PAIS 2004 - Proceedings
EditorsRamon Lopez de Mantaras, Lorenza Saitta
PublisherIOS Press BV
Pages79-83
Number of pages5
ISBN (Electronic)9781586034528
StatePublished - 2004
Externally publishedYes
Event16th European Conference on Artificial Intelligence, ECAI 2004 - Valencia, Spain
Duration: 22 Aug 200427 Aug 2004

Publication series

NameFrontiers in Artificial Intelligence and Applications
Volume110
ISSN (Print)0922-6389
ISSN (Electronic)1879-8314

Conference

Conference16th European Conference on Artificial Intelligence, ECAI 2004
Country/TerritorySpain
CityValencia
Period22/08/0427/08/04

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