Rational Bidding Using Reinforcement Learning

  • Authors:
  • Nikolay Borissov;Arun Anandasivam;Niklas Wirström;Dirk Neumann

  • Affiliations:
  • Information Management and Systems, University of Karlsruhe, Karlsruhe, 76131;Information Management and Systems, University of Karlsruhe, Karlsruhe, 76131;Swedish Institute of Computer Science, Kista, Sweden SE-164 29;University of Freiburg,Platz der Alten Synagoge, Freiburg, Germany 79085

  • Venue:
  • GECON '08 Proceedings of the 5th international workshop on Grid Economics and Business Models
  • Year:
  • 2008

Quantified Score

Hi-index 0.00

Visualization

Abstract

The application of autonomous agents by the provisioning and usage of computational resources is an attractive research field. Various methods and technologies in the area of artificial intelligence, statistics and economics are playing together to achieve i) autonomic resource provisioning and usage of computational resources, to invent ii) competitive bidding strategies for widely used market mechanisms and to iii) incentivize consumers and providers to use such market-based systems.The contributions of the paper are threefold. First, we present a framework for supporting consumers and providers in technical and economic preference elicitation and the generation of bids. Secondly, we introduce a consumer-side reinforcement learning bidding strategy which enables rational behavior by the generation and selection of bids. Thirdly, we evaluate and compare this bidding strategy against a truth-telling bidding strategy for two kinds of market mechanisms --- one centralized and one decentralized.