An adaptive attitude bidding strategy for agents in continuous double auctions

  • Authors:
  • Huiye Ma;Ho-Fung Leung

  • Affiliations:
  • Department of Computer Science and Engineering, The Chinese University of Hong Kong, Hong Kong, China;Department of Computer Science and Engineering, The Chinese University of Hong Kong, Hong Kong, China

  • Venue:
  • Electronic Commerce Research and Applications
  • Year:
  • 2007

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Abstract

A continuous double auction (CDA) is an efficient market institution for real-world trading of commodities and electronic marketplaces. In this paper, we present the design and analysis of a new bidding strategy for buyer and seller agents participating in agent-based CDAs. The strategy employs heuristic rules and a reasoning mechanism based on a two-level adaptive bid-determination method, including short-term and long-term attitudes. Agents adopting the strategy dynamically adjust their behaviors in response to the changes of the supply and demand relationships in the market. Experimental results show that agents adopting the strategy outperform agents using other strategies reported in the literature.