Intelligent agents for multi-issue auctions and bidding

An approach to auctions and bidding is founded on observations and expectations of the opponents' behavior and not on assumptions concerning the opponents' motivations or internal reasoning. The approach draws ideas from information theory. A bidding ag

A multi-agent platform for auction-based allocation of loads in transportation logistics

This paper describes an agent-based platform for the allocation of loads in distributed transportation logistics, developed as a collaboration between CWI, Dutch National Center for Mathematics and Computer Science, Amsterdam and Vos Logistics Organizing, Nijmegen, The Netherlands. The platform follows a real business scenario proposed by Vos, and it involves a set of agents bidding for transportation loads to be distributed from a central depot in the Netherlands to different locations across Germany. The platform supports both human agents (i.e. transportation planners), who can bid through specialized planning and bidding interfaces, as well as automated, software agents. We exemplify how the proposed platform can be used to test both the bidding behaviour of human logistics planners, as well as the performance of automated auction bidding strategies, developed for such settings. The paper first introduces the business problem setting and then describes the architecture and main characteristics of our auction platform. We conclude with a preliminary discussion of our experience from a human bidding experiment, involving Vos planners competing for orders both against each other and against some (simple) automated strategies

Interaction between intelligent agent strategies for real-time transportation planning

In this paper we study the real-time scheduling of time-sensitive full truckload pickup-and-delivery jobs. The problem involves the allocation of jobs to a fixed set of vehicles which might belong to dfferent collaborating transportation agencies. A recently proposed solution methodology for this problem is the use of a multi-agent system where shipper agents other jobs through sequential auctions and vehicle agents bid on these jobs. In this paper we consider such a multi-agent system where both the vehicle agents and the shipper agents are using profit maximizing look-ahead strategies. Our main contribution is that we study the interrelation of these strategies and their impact on the system-wide logistical costs. From our simulation results, we conclude that the system-wide logistical costs (i) are always reduced by using the look-ahead policies instead of a myopic policy (10-20%) and (ii) the joint effect of two look-ahead policies is larger than the effect of an individual policy. To provide an indication of the savings that might be realized with a central solution methodology, we benchmark our results against an integer programming approach

A Multi-Agent based Configuration Process for Mass Customization

Large product variety in mass customization involves a high internal complexity level inside a companyís operations, as well as a high external complexity level from a customerís perspective. In order to reach a competitive advantage through mass customization, it is necessary to cope with both problems. This is done within the scope of variety formation and variety steering tasks: Variety formation supports customers during the configuration task according to their preferences and knowledge, variety steering tasks internally deal with finding the customizerís optimal offer. Driven by this economic background, we present a comprehensive multi-agent based design for a configuration process in this paper. It is identified as a suitable solution approach integrating both perspectives. The mass customized products are assumed to be based on a modular architecture and each module variant is associated with an autonomous rational agent. Agents must compete with each other in order to join product variants which suit real customersí requirements. The negotiation process is based on a market mechanism supported by the target costing concept and a Dutch auction.Multi-agent systems; Configuration process; Market mechanism; Mass Customization

Computational Mechanism Design: A Call to Arms

Game theory has developed powerful tools for analyzing decision making in systems with multiple autonomous actors. These tools, when tailored to computational settings, provide a foundation for building multiagent software systems. This tailoring gives rise to the field of computational mechanism design, which applies economic principles to computer systems design

Agent-based transportation planning compared with scheduling heuristics

Here we consider the problem of dynamically assigning vehicles to transportation orders that have di¤erent time windows and should be handled in real time. We introduce a new agent-based system for the planning and scheduling of these transportation networks. Intelligent vehicle agents schedule their own routes. They interact with job agents, who strive for minimum transportation costs, using a Vickrey auction for each incoming order. We use simulation to compare the on-time delivery percentage and the vehicle utilization of an agent-based planning system to a traditional system based on OR heuristics (look-ahead rules, serial scheduling). Numerical experiments show that a properly designed multi-agent system may perform as good as or even better than traditional methods

A Rule-driven Approach for Defining the Behavior of Negotiating Software Agents

One problem with existing agent-mediated negotiation systems is that they rely on ad hoc, static, non-adaptive, and hardcoded schemes to represent the behaviour of agents. This limitation is probably due to the complexity of the negotiation task itself. Indeed, while negotiating, software (human) agents face tough decisions. These decisions are based not only on the information made available by the negotiation server, but on the behaviour of the other participants in the negotiation process as well. The information and the behaviour in question are constantly changing and highly uncertain. In the first part of the paper, we propose a rule-driven approach to represent, manage and explore negotiation strategies and coordination information. For that, we divide the behaviour of negotiating agents into protocols, strategies and coordination. Among the many advantages of the proposed solution, we can cite the high level of abstraction, the closeness to human understanding, the versatility, and the possibility to modify the agents' behaviour during the negotiation process. To validate our solution, we ran many agent tournaments, and used the rule-driven approach to implement bidding strategies that are common in the English and Dutch auctions. We also implemented simple coordination schemes across several auctions. The ongoing validation work is detailed and discussed in the second part of the paper. Un des inconvénients qu'on retrouve fréquemment dans les systèmes de négociation par agents est qu'ils reposent sur des schémas ad-hoc, non adaptatifs et figés dans le code pour représenter le comportement des agents. Cette limitation est probablement due à la complexité de l'activité de négociation elle-même. En effet, au cours de la négociation, les agents logiciels (humains) ont des décisions difficiles à prendre. Ces décisions ne sont pas seulement basées sur l'information disponible sur le serveur de négociation, mais aussi sur le comportement des autres participants durant le processus de négociation. L'information et le comportement en question changent constamment et sont très incertains. Dans la première partie de l'article, nous proposons une approche à base de règles pour représenter, gérer et explorer les stratégies de négociation ainsi que l'information de coordination. Parmi les nombreux avantages de la solution proposée, on peut citer le haut niveau d'abstraction, la proximité avec la compréhension humaine, la souplesse d'utilisation et la possibilité de modifier le comportement des agents durant le processus de négociation. Pour valider notre solution, nous avons effectué plusieurs tournois entre agents et utilisé l'approche à base de règles pour implémenter des stratégies simples applicables à l'enchère anglaise et à l'enchère hollandaise. Nous avons aussi implémenté des schémas simples de coordination impliquant plusieurs enchères. Le travail de validation, en cours, est détaillé et discuté dans la seconde partie de l'article.e-negotiation, online auction, software agent, negotiation strategy, coordination, rule-based system, rule engine, Négociation électronique, enchères en ligne, agents logiciels, stratégie de négociation, coordination, système à base de règles, moteur de règles

Coordination of Purchasing and Bidding Activities Across Markets

In both consumer purchasing and industrial procurement, combinatorial interdependencies among the items to be purchased are commonplace. E-commerce compounds the problem by providing more opportunities for switching suppliers at low costs, but also potentially eases the problem by enabling automated market decision-making systems, commonly referred to as trading agents, to make purchasing decisions in an integrated manner across markets. Most of the existing research related to trading agents assumes that there exists a combinatorial market mechanism in which buyers (or sellers) can bid (or sell) service or merchant bundles. Todayâ??s prevailing e-commerce practice, however, does not support this assumption in general and thus limits the practical applicability of these approaches. We are investigating a new approach to deal with the combinatorial interdependency challenges for online markets. This approach relies on existing commercial online market institutions such as posted-price markets and various online auctions that sell single items. It uses trading agents to coordinate a buyerâ??s purchasing and bidding activities across multiple online markets simultaneously to achieve the best overall procurement effectiveness. This paper presents two sets of models related to this approach. The first set of models formalizes optimal purchasing decisions across posted-price markets with fixed transaction costs. Flat shipping costs, a common e-tailing practice, are captured in these models. We observe that making optimal purchasing decisions in this context is NP-hard in the strong sense and suggest several efficient computational methods based on discrete location theory. The second set of models is concerned with the coordination of bidding activities across multiple online auctions. We study the underlying coordination problem for a collection of first or second-price sealed-bid auctions and derive the optimal coordination and bidding policies.