@inproceedings{d4ac76c60a1547148ec2f97479198265,
title = "Dynamic pricing with limited competitor information in a multi-agent economy",
abstract = "We study the price dynamics in a multi-agent economy consisting of buyers and competing sellers, where each seller has limited information about its competitors{\textquoteright} prices. In this economy, buyers use shopbots while the sellers employ automated pricing agents or pricebots. A pricebot resets its seller{\textquoteright}s price at regular intervals with the objective of maximizing revenue in each time period. Derivative following provides a simple, albeit naive, strategy for dynamic pricing in such a scenario. In this paper, we refine the derivative following algorithm and introduce a model-optimizer algorithm that re-estimates the priceprofit relationship for a seller in each period more efficiently. Simulations using the model-optimizer algorithm indicate that it outperforms derivative following even though it does not have any additional information about the market. Our results underscore the role machine learning and optimization can play in fostering competition (or cooperation) in a multi-agent economy where the agents have limited information about their environment.",
keywords = "Dynamic pricing, Electronic commerce, Multi-agent systems, Shopbots and pricebots",
author = "Prithviraj Dasgupta and Rajarshi Das",
note = "Publisher Copyright: {\textcopyright} Springer-Verlag Berlin Heidelberg 2000.; 7th International Conference on Cooperative Information Systems, CoopIS 2000 ; Conference date: 06-09-2000 Through 08-09-2000",
year = "2000",
doi = "10.1007/10722620_28",
language = "English (US)",
isbn = "354041021X",
series = "Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)",
publisher = "Springer Verlag",
pages = "299--310",
editor = "Opher Etzion and Peter Scheuermann",
booktitle = "Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)",
}