Genetic Algorithm based bargaining agent for Implementing Dynamic Pricing on Internet

This paper proposes a bargaining agent which uses genetic algorithm for implementing dynamic pricing on the Internet. Dynamic pricing is about charging different price from different customers. Auction and bargain are two main ways of implementing dynamic pricing on Internet. As compared to auction, online bargaining is a "win-win" situation for both the seller and buyer because the mutually agreed deal price is higher than the seller\´s reserved price but lower than the buyer\´s reserved price. This problem of online bargaining eventually boils down to an optimization problem where the seller\´s task is to :- a)offer the best price to buyer so as to reach a deal b) to make maximum profit. The work presented in this paper proposes a simple and elegant way to implement online bargaining using genetic algorithm (GA). With an efficient design of fitness function, crossover and mutation operators, this paper shows how online bargaining can be implemented to sell products on the Internet