Agent-Based Price Negotiation System for Electronic Commerce

With the rapid development of electronic commerce, more and more people begin to go shopping on the Internet at present. Price negotiation has become increasingly important for two reasons. One is from a consumer´s view price negotiation provides an opportunity to debate the price, the other is from a vendor´s view the ability to price negotiation allows for flexibility in pricing that a rigidly fixed price cannot offer. An obstacle of hindering the development of electronic commerce is that price negotiation on the Internet is not different like shopping in store. In this paper, the author wants to design an agent-based price negotiation system for electronic commerce. It can replace the seller to negotiate with the buyers on the Internet. Firstly we put forward a framework of agent- based price negotiation, then we propose a price negotiation model based on equilibrium theory of game theory. Finally, the paper describes the behavior definition of agent and explains the rules how to communicate between agents.