Internet auctions with artificial adaptive agents: A study on market design

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2008
Volume: 67
Issue: 2
Pages: 394-417

Authors (2)

Duffy, John (not in RePEc) Ünver, M.Utku (Deakin University)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We develop a model of internet auctions with the aim of understanding how rules for ending such auctions (a "hard"- or "soft"-close) affect bidding behavior. We model bidding strategies using finite automata and report results from simulations involving populations of artificial bidders who update their strategies using a genetic algorithm. Our model is shown to deliver late or early bidding behavior, depending on whether the auction has a hard- or soft-close rule in accordance with the empirical evidence. We report on other interesting properties of our model and offer some conclusions from a market design point of view.

Technical Details

RePEc Handle
repec:eee:jeborg:v:67:y:2008:i:2:p:394-417
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25