Information Technology Reference
In-Depth Information
Section 2 is not solvable in a theoretical sense, and can only be explained by means of action scenarios,
as is done later.
Some scenarios of agent trading are described below. The focus is on
reverse auctions
, where a
buyer agent places an order that is matched by a seller agent, or by the community of seller agents, in
a situation where help is sought from the community in matching an order. Three cases are proposed
where a seller agent can meet the buyer agent's demand, or a seller agent can decline to meet that de-
mand, or the seller agent does not have enough quantity to meet the demand. This work is based entirely
upon volume, rather than upon price or profitability. The objective is always to maximize the volume of
transaction equally for the buyer agent, as it is for the seller agent. The decisions and actions are intended
to facilitate transactions by means of co-operation, as needed, to maximize volume of transaction in
either direction of buying and selling as performed by the agents.
Reverse Auction (Tendering)
There are
n
suppliers and
one
buyer. During fixed time duration of
∆
t
,
i.e.
during the time the offer is
open, there is a need to maximize the buyer's utility. The buyer's utility is a function of trading volume,
and profit. During the auction of this tendering the following auction cases can happen:
1.
Auction case 1
. Supplier can supply the demand,
i.e.
there is a match between the buyer's demand
and the seller's quantity.
2.
Auction case 2
. Supplier has volume larger than the buyer's required quantity, but does not want
to sell a split quantity corresponding to the buyer's requirement, because of the characteristics of
the goods.
3.
Auction case 3
. Supplier does not have enough goods for a buyer's demand,
i.e.
seller's quantity
is short of the buyer's requirements.
In
Auction case 1
, there is no difference between traditional trading and the
ABTS
,
i.e.
Agent Based
Trading System
. This is the simple case, with a volume match between the buyer and the seller, and the
volume is maximized in the given circumstance.
Thus, the utility functions of both the buyer and the seller are defined in terms of increasing volume,
or, in terms of completing the volume of the sale. The
Auction cases 2 and 3
are designed with stated
conditions that enable the
ABTS
to improve the seller and buyer's utility with respect to volume. Let
V
be the volume of transaction in question, with respect to either buyer or seller, in the given time space
∆
t
, which is a fixed time duration. The transaction volumes within the fixed time period are maximized
by volume matching by agents. The corresponding matching results are described below.
The achieved transaction volumes are described in a fixed time period. The assumption is that of a
steady state,
i.e.
whatever gains are observed in this time period will also be true in an extended period.
Thus, for the fixed time duration of ∆
t
, the volume of transaction is given as described below:
∑
V =
(5)
v
'tii
i
Where, v
'tii
is the volume of transaction
i
with traditional matching in ∆
t
, and
∑
'
'tii
V' =
(6)
i
Search WWH ::
Custom Search