Equilibrium analyses of market-driven agents

  • Authors:
  • Kwang Mong Sim

  • Affiliations:
  • Department of Information Engineering, Chinese University of Hong Kong, Shatin, NT, Hong Kong

  • Venue:
  • ACM SIGecom Exchanges
  • Year:
  • 2003

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Abstract

Market-driven agents (MDAs) are negotiation agents that make adjustable amounts of concession by considering factors such as competition, deadlines, and trading options. While previous work demonstrates the properties of MDAs by experiments, this paper provides mathematical analyses to show that (1) for a given market situation, an MDA makes minimally sufficient concession, and (2) the strategies adopted by MDAs are in equilibrium. The results show that MDAs are stable (stability is an essential evaluation criterion for negotiation agents) and they avoid making excessive or inadequate concession in a market situation.