A Game-Theoretic Analysis of Market Selection Strategies for Competing Double Auction Marketplaces
A Game-Theoretic Analysis of Market Selection Strategies for Competing Double Auction Marketplaces
In this paper, we propose a novel general framework for analysing competing double auction markets that vie for traders, who then need to choose which market to go to. Based on this framework, we analyse the competition between two markets in detail. Specifically, we game-theoretically analyse the equilibrium behaviour of traders' market selection strategies and adopt evolutionary game theory to investigate how traders dynamically change their strategies, and thus, which equilibrium, if any, can be reached. In so doing, we show that it is unlikely for these competing markets to coexist. Eventually, all traders will always converge to locating themselves at one of the markets. Somewhat surprisingly, we find that sometimes all traders converge to the market that charges higher fees. Thus we further analyse this phenomenon, and specifically determine the factors that affect such migration.
857-864
Shi, Bing
293fdf16-4597-4ae9-94fd-4415b9b1dc8f
Gerding, Enrico H.
d9e92ee5-1a8c-4467-a689-8363e7743362
Vytelingum, Perukrishnen
51f06fc5-024c-450d-bff2-e19c943aa87e
Jennings, Nicholas R.
ab3d94cc-247c-4545-9d1e-65873d6cdb30
2010
Shi, Bing
293fdf16-4597-4ae9-94fd-4415b9b1dc8f
Gerding, Enrico H.
d9e92ee5-1a8c-4467-a689-8363e7743362
Vytelingum, Perukrishnen
51f06fc5-024c-450d-bff2-e19c943aa87e
Jennings, Nicholas R.
ab3d94cc-247c-4545-9d1e-65873d6cdb30
Shi, Bing, Gerding, Enrico H., Vytelingum, Perukrishnen and Jennings, Nicholas R.
(2010)
A Game-Theoretic Analysis of Market Selection Strategies for Competing Double Auction Marketplaces.
9th International Conference on Autonomous Agents and Multi-Agent Systems (AAMAS2010), Toronto, Canada.
14 - 18 May 2010.
.
Record type:
Conference or Workshop Item
(Paper)
Abstract
In this paper, we propose a novel general framework for analysing competing double auction markets that vie for traders, who then need to choose which market to go to. Based on this framework, we analyse the competition between two markets in detail. Specifically, we game-theoretically analyse the equilibrium behaviour of traders' market selection strategies and adopt evolutionary game theory to investigate how traders dynamically change their strategies, and thus, which equilibrium, if any, can be reached. In so doing, we show that it is unlikely for these competing markets to coexist. Eventually, all traders will always converge to locating themselves at one of the markets. Somewhat surprisingly, we find that sometimes all traders converge to the market that charges higher fees. Thus we further analyse this phenomenon, and specifically determine the factors that affect such migration.
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Published date: 2010
Additional Information:
Event Dates: 14th-18th May
Venue - Dates:
9th International Conference on Autonomous Agents and Multi-Agent Systems (AAMAS2010), Toronto, Canada, 2010-05-14 - 2010-05-18
Organisations:
Agents, Interactions & Complexity
Identifiers
Local EPrints ID: 268467
URI: http://eprints.soton.ac.uk/id/eprint/268467
PURE UUID: dd61e289-db19-4b28-b049-43e1761b7ab4
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Date deposited: 04 Feb 2010 13:51
Last modified: 15 Mar 2024 03:23
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Contributors
Author:
Bing Shi
Author:
Enrico H. Gerding
Author:
Perukrishnen Vytelingum
Author:
Nicholas R. Jennings
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