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A fuzzy logic based bidding strategy for autonomous agents in continuous double auctions

A fuzzy logic based bidding strategy for autonomous agents in continuous double auctions
A fuzzy logic based bidding strategy for autonomous agents in continuous double auctions
Increasingly, many systems are being conceptualized, designed, and implemented as marketplaces in which autonomous software entities (agents) trade services. These services can be commodities in e-commerce applications or data and knowledge services in information economies. In many of these cases, there are both multiple agents that are looking to procure services and multiple agents that are looking to sell services at any one time. Such marketplaces are termed continuous double auctions (CDAs). Against this background, this paper develops new algorithms that buyer and seller agents can use to participate in CDAs. These algorithms employ heuristic fuzzy rules and fuzzy reasoning mechanisms in order to determine the best bid to make given the state of the marketplace. Moreover, we show how an agent can dynamically adjust its bidding behavior to respond effectively to changes in the supply and demand in the marketplace. We then show, by empirical evaluations, how our agents outperform four of the most prominent algorithms previously developed for CDAs (several of which have been shown to outperform human bidders in experimental studies).
Intelligent agents, service marketplaces, continuous double auction, fuzzy logic, e-commerce
1345-1363
He, M.
414070d3-f81b-455f-86ac-a11370fb36e3
Leung, H.
704d9354-b6b8-4d1f-83c5-1095cce20f7d
Jennings, N. R.
ab3d94cc-247c-4545-9d1e-65873d6cdb30
He, M.
414070d3-f81b-455f-86ac-a11370fb36e3
Leung, H.
704d9354-b6b8-4d1f-83c5-1095cce20f7d
Jennings, N. R.
ab3d94cc-247c-4545-9d1e-65873d6cdb30

He, M., Leung, H. and Jennings, N. R. (2003) A fuzzy logic based bidding strategy for autonomous agents in continuous double auctions. IEEE Trans on Knowledge and Data Engineering, 15 (6), 1345-1363.

Record type: Article

Abstract

Increasingly, many systems are being conceptualized, designed, and implemented as marketplaces in which autonomous software entities (agents) trade services. These services can be commodities in e-commerce applications or data and knowledge services in information economies. In many of these cases, there are both multiple agents that are looking to procure services and multiple agents that are looking to sell services at any one time. Such marketplaces are termed continuous double auctions (CDAs). Against this background, this paper develops new algorithms that buyer and seller agents can use to participate in CDAs. These algorithms employ heuristic fuzzy rules and fuzzy reasoning mechanisms in order to determine the best bid to make given the state of the marketplace. Moreover, we show how an agent can dynamically adjust its bidding behavior to respond effectively to changes in the supply and demand in the marketplace. We then show, by empirical evaluations, how our agents outperform four of the most prominent algorithms previously developed for CDAs (several of which have been shown to outperform human bidders in experimental studies).

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Published date: 2003
Keywords: Intelligent agents, service marketplaces, continuous double auction, fuzzy logic, e-commerce
Organisations: Agents, Interactions & Complexity

Identifiers

Local EPrints ID: 258566
URI: http://eprints.soton.ac.uk/id/eprint/258566
PURE UUID: 451efc1f-207f-4135-87f6-a93befb653a8

Catalogue record

Date deposited: 17 Nov 2003
Last modified: 14 Mar 2024 06:10

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Contributors

Author: M. He
Author: H. Leung
Author: N. R. Jennings

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