Adaptive conceding strategies for automated trading agents in dynamic, open markets

  • Authors:

  • Fenghui Ren;Minjie Zhang;Kwang Mong Sim

  • Affiliations:

  • School of Computer Science and Software Engineering, University of Wollongong, Wollongong NSW 2522, Australia;School of Computer Science and Software Engineering, University of Wollongong, Wollongong NSW 2522, Australia;Dept. of Information and Communications, Gwangju Institute of Science and Technology, Gwangju 500-712, Republic of Korea

  • Venue:
  • Decision Support Systems
  • Year:
  • 2009

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Abstract

One of the crucial issues of automated negotiation in multi-agent systems is how to reach an agreement when a negotiation environment becomes open and dynamic. Even though some strategies have been proposed by researchers, most of them can only work within a static negotiation environment. In this paper, we present a model for designing a strategy for agents that makes adjustable rates of concession by negotiating according to the changes of environments with uncertain and dynamic outside options. This proposal is based on the market-driven agents (MDAs) model, and is guided by four factors in order to determine the degree of concession. These factors are trading opportunity, trading competition, trading time and strategy, and eagerness. The contribution of this paper is extending the MDAs model to an open and dynamic negotiation environment by considering both the current and potential changes of the environment.