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

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). pp. 1345-1363.

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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).

Item Type:Article
Creator/Authors:
M. He
H. Leung
N. R. Jennings
Keywords:Intelligent agents, service marketplaces, continuous double auction, fuzzy logic, e-commerce
Research Group:Old ECS Groups > Intelligence, Agents, Multimedia
Current ECS Groups > Agents, Interaction and Complexity
Date:2003
Information about this record:
Performance Indicator:EX~03~02~11
Citations:ISI: 48, Google Scholar: 128
Downloads (2010):86
ID Code:8566
Last Modified:23 Sep 2011 10:30
Deposited On:17 Nov 2003 by Earl, Rebecca

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