Title :
Backward induction strategy (BIDS) for bidding in multiple auctions
Author :
Zhang, Jie ; Lee, Raymond S T ; Chan, Henry C B
Author_Institution :
Dept. of Comput., Hong Kong Polytech Univ., Kowloon, China
Abstract :
We present a bidding strategy that enables an agent to bid in multiple English auctions. Based on a backward induction method, backward induction strategy (BIDS) seeks to maximize the value of a utility function. In general, the agent needs to determine whether to bid in the next available auction. Note that it may be better to stop bidding if the current utility (the utility associated with the current bid price) is less than the expected utility of all of the subsequent auctions. Simulation results demonstrate the advantages of BIDS over other strategies.
Keywords :
Internet; electronic commerce; marketing; optimisation; software agents; agent-based service; backward induction strategy; bidding strategy; multiple English auction; Business; Dynamic programming; Marketing and sales; Mathematical model; Mobile agents; Software agents; Stochastic processes; Utility theory;
Conference_Titel :
Systems, Man and Cybernetics, 2003. IEEE International Conference on
Print_ISBN :
0-7803-7952-7
DOI :
10.1109/ICSMC.2003.1245664