3,145 research outputs found
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Automated Negotiation for Complex Multi-Agent Resource Allocation
The problem of constructing and analyzing systems of intelligent, autonomous agents is becoming more and more important. These agents may include people, physical robots, virtual humans, software programs acting on behalf of human beings, or sensors. In a large class of multi-agent scenarios, agents may have different capabilities, preferences, objectives, and constraints. Therefore, efficient allocation of resources among multiple agents is often difficult to achieve. Automated negotiation (bargaining) is the most widely used approach for multi-agent resource allocation and it has received increasing attention in the recent years. However, information uncertainty, existence of multiple contracting partners and competitors, agents\u27 incentive to maximize individual utilities, and market dynamics make it difficult to calculate agents\u27 rational equilibrium negotiation strategies and develop successful negotiation agents behaving well in practice. To this end, this thesis is concerned with analyzing agents\u27 rational behavior and developing negotiation strategies for a range of complex negotiation contexts. First, we consider the problem of finding agents\u27 rational strategies in bargaining with incomplete information. We focus on the principal alternating-offers finite horizon bargaining protocol with one-sided uncertainty regarding agents\u27 reserve prices. We provide an algorithm based on the combination of game theoretic analysis and search techniques which finds agents\u27 equilibrium in pure strategies when they exist. Our approach is sound, complete and, in principle, can be applied to other uncertainty settings. Simulation results show that there is at least one pure strategy sequential equilibrium in 99.7% of various scenarios. In addition, agents with equilibrium strategies achieved higher utilities than agents with heuristic strategies. Next, we extend the alternating-offers protocol to handle concurrent negotiations in which each agent has multiple trading opportunities and faces market competition. We provide an algorithm based on backward induction to compute the subgame perfect equilibrium of concurrent negotiation. We observe that agents\u27 bargaining power are affected by the proposing ordering and market competition and for a large subset of the space of the parameters, agents\u27 equilibrium strategies depend on the values of a small number of parameters. We also extend our algorithm to find a pure strategy sequential equilibrium in concurrent negotiations where there is one-sided uncertainty regarding the reserve price of one agent. Third, we present the design and implementation of agents that concurrently negotiate with other entities for acquiring multiple resources. Negotiation agents are designed to adjust 1) the number of tentative agreements and 2) the amount of concession they are willing to make in response to changing market conditions and negotiation situations. In our approach, agents utilize a time-dependent negotiation strategy in which the reserve price of each resource is dynamically determined by 1) the likelihood that negotiation will not be successfully completed, 2) the expected agreement price of the resource, and 3) the expected number of final agreements. The negotiation deadline of each resource is determined by its relative scarcity. Since agents are permitted to decommit from agreements, a buyer may make more than one tentative agreement for each resource and the maximum number of tentative agreements is constrained by the market situation. Experimental results show that our negotiation strategy achieved significantly higher utilities than simpler strategies. Finally, we consider the problem of allocating networked resources in dynamic environment, such as cloud computing platforms, where providers strategically price resources to maximize their utility. While numerous auction-based approaches have been proposed in the literature, our work explores an alternative approach where providers and consumers negotiate resource leasing contracts. We propose a distributed negotiation mechanism where agents negotiate over both a contract price and a decommitment penalty, which allows agents to decommit from contracts at a cost. We compare our approach experimentally, using representative scenarios and workloads, to both combinatorial auctions and the fixed-price model, and show that the negotiation model achieves a higher social welfare
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Hold-up and the evolution of investment and bargaining norms
The purpose of this paper is to explore the evolution of bargaining norms in a simple team production problem with two sided relationship specific investments, and competition. The puzzle we wish to address is why efficient bargaining norms do not evolve even though there exist efficient sequential equilibria. Conditions under which stochastically stable bargaining conventions exist are characterized, and it is shown that the stochastically stable division rule is independent of the long run investment strategy. Hence, efficient sequential equilibria are not in general stochastically stable, a result that may help us understand why institutions, such as firms, may be needed to ensure efficient exchange in the context of relationship specific investments. We also find that increasing competition, while enhancing incentives, may also destabilize existing bargaining norms
Accounting for Uncertainty Affecting Technical Change in an Economic-Climate Model
The key role of technological change in the decline of energy and carbon intensities of aggregate economic activities is widely recognized. This has focused attention on the issue of developing endogenous models for the evolution of technological change. With a few exceptions this is done using a deterministic framework, even though technological change is a dynamic process which is uncertain by nature. Indeed, the two main vectors through which technological change may be conceptualized, learning through R&D investments and learning-by-doing, both evolve and cumulate in a stochastic manner. How misleading are climate strategies designed without accounting for such uncertainty? The main idea underlying the present piece of research is to assess and discuss the effect of endogenizing this uncertainty on optimal R&D investment trajectories and carbon emission abatement strategies. In order to do so, we use an implicit stochastic programming version of the FEEM-RICE model, first described in Bosetti, Carraro and Galeotti, (2005). The comparative advantage of taking a stochastic programming approach is estimated using as benchmarks the expected-value approach and the worst-case scenario approach. It appears that, accounting for uncertainty and irreversibility would affect both the optimal level of investment in R&D âwhich should be higherâ and emission reductions âwhich should be contained in the early periods. Indeed, waiting and investing in R&D appears to be the most cost-effective hedging strategy.Stochastic Programming, Uncertainty and Learning, Endogenous Technical Change
Economic Evaluation of Climate Change Impacts and Adaptation in Italy
The paper deals with the social and economic dimensions of climate change impacts and adaptation in Italy. The ultimate aim of the paper is to provide policy makers and experts with a conceptual framework, as well as methodological and operational tools for dealing with climate change impacts and adaptation from an economic perspective. In order to do so, first a conceptual and theoretical framework of the economic assessment of climate change impacts is presented and the state of the art about impact assessment studies is briefly analysed. Then, the Italian case is taken into account, by underlying the main impacts and adaptation challenges that are likely to be implied by climate change in the next decades. The analysis of the Italian case is particularly addressed through the description of the methodology and results of two case studies. The first one, dealing mainly with impact assessment, is carried out at the national level and is part of a EC funded project on Weather Impacts on Natural, Social and Economic Systems (WISE). The second one is carried out at the local level and focuses on sea level rise impacts and adaptation in a plane south of Rome. The two case studies allow to propose simple and flexible methodologies for the economic impact assessment and the economic valuation of adaptation strategies.Climate change, Economic impact assessment, Adaptation, Cost benefit analysis
Optimal Soil Management and Environmental Policy
This paper studies the effects of environmental policy on the farmerâs soil optimal management. We consider a dynamic economic model of soil erosion where the intensity use of inputs allows the farmer to control soil losses. Therefore, inputs use induces a pollution which is accentuated by the soil fragility. We show, at the steady state, that the environmental tax induces a more conservative farmer behavior for soil, but in some cases it can exacerbate pollution. These effects can be moderated when farmers introduce abatement activity.Soil erosion, Pollution, Environmental policy, Optimal soil conservation, Abatement activities
Spatial Dynamic Modeling and Urban Land Use Transformation:
Assessing the economic impacts of urban land use transformation has become complex and acrimonious. Although community planners are beginning to comprehend the economic trade-offs inherent in transforming the urban fringe, they find it increasingly difficult to analyze and assess the trade-offs expediently and in ways that can influence local decisionmaking. New and sophisticated spatial modeling techniques are now being applied to urban systems that can quickly assess the probable spatial outcomes of given communal policies. Applying an economic impact assessment to the probable spatial patterns can provide to planners the tools needed to quickly assess scenarios for policy formation that will ultimately help inform decision makers. This paper focuses on the theoretical underpinnings and practical application of an economic impact analysis submodel developed within the Land use Evolution and Impact Assessment Modeling (LEAM) environment. The conceptual framework of LEAM is described, followed by an application of the model to the assessment of the cost of urban sprawl in Kane County, Illinois. The results show the effectiveness of spatially explicit modeling from a theoretical and a practical point of view. The agent-based approach of spatial dynamic modeling with a high spatial resolution allows for discerning the macro-level implications of micro-level behaviors. These phenomena are highlighted in the economic submodel in the discussion of the implications of land use change decisions on individual and communal costs; low-density development patterns favoring individual behaviors at the expense of the broader community.
Spatial competition of learning agents in agricultural procurement markets
Spatially dispersed farmers supply raw milk as the primary input to a small number of large dairy-processing firms. The spatial competition of processing firms has short- to long-term repercussions on farm and processor structure, as it determines the regional demand for raw milk and the resulting raw milk price. A number of recent analytical and empirical contributions in the literature analyse the spatial price competition of processing firms in milk markets. Agent-based models (ABMs) serve by now as computational laboratories in many social science and interdisciplinary fields and are recently also introduced as bottom-up approaches to help understand market outcomes emerging from autonomously deciding and interacting agents. Despite ABMs' strengths, the inclusion of interactive learning by intelligent agents is not sufficiently matured. Although the literature of multi-agent systems (MASs) and multi-agent economic simulation are related fields of research they have progressed along separate paths. This thesis takes us through some basic steps involved in developing a theoretical basis for designing multi-agent learning in spatial economic ABMs. Each of the three main chapters of the thesis investigates a core issue for designing interactive learning systems with the overarching aim of better understanding the emergence of pricing behaviour in real, spatial agricultural markets. An important problem in the competitive spatial economics literature is the lack of a rigorous theoretical explanation for observed collusive behavior in oligopsonistic markets. The first main chapter theoretically derives how the incorporation of foresight in agents' pricing policy in spatial markets might move the system towards cooperative Nash equilibria. It is shown that a basic level of foresight invites competing firms to cease limitless price wars. Introducing the concept of an outside option into the agents' decisions within a dynamic pricing game reveals viihow decreasing returns for increasing strategic thinking correlates with the relevance of transportation costs. In the second main chapter, we introduce a new learning algorithm for rational agents using H-PHC (hierarchical policy hill climbing) in spatial markets. While MASs algorithms are typically just applicable to small problems, we show experimentally how a community of multiple rational agents is able to overcome the coordination problem in a variety of spatial (and non-spatial) market games of rich decision spaces with modest computational effort. The theoretical explanation of emerging price equilibria in spatial markets is much disputed in the literature. The majority of papers attribute the pricing behavior of processing firms (mill price and freight absorption) merely to the spatial structure of markets. Based on a computational approach with interactive learning agents in two-dimensional space, the third main chapter suggests that associating the extent of freight absorption just with the factor space can be ambiguous. In addition, the pricing behavior of agricultural processors â namely the ability to coordinate and achieve mutually beneficial outcomes - also depends on their ability to learn from each other
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