A roadmap to auction-based negotiation protocols for electronic commerce

Economic mechanisms are used to determine the flow of resources in a supply chain and to achieve an efficient allocation of goods and services in networked economies. In order to choose the "right" allocation mechanism for a certain situation, it is important to know about the characteristics of different negotiation situations and the set of available mechanisms that are suitable in these situations. Over the past few years, there has been an enormous interest of researchers in economics, computer science and game theory to develop advanced economic mechanisms for the creation of new types of electronic exchanges. Combinatorial auctions, multi-attribute auctions and multi-stage auctions are some of the approaches to extend the framework of mechanism design theory. In this paper, we develop a classification scheme for negotiation situations in electronic commerce based on microeconomic theory. We describe classic mechanism design and auction theory, and classify old and new approaches in this field.

[1]  Gregory Kersten,et al.  Negotiation and the Internet : Users ’ Expectations and Acceptance , 1998 .

[2]  F. Branco.  The Design of Multidimensional Auctions , 1997 .

[3]  A. Segev,et al.  Multi-attribute Auctions for Electronic Procurement , 1999 .

[4]  Arie Segev,et al.  Automated Negotiations: A Survey of the State of the Art , 1997, Wirtschaftsinf..

[5]  Nicholas R. Jennings,et al.  A Service-Oriented Negotiation Model between Autonomous Agents , 1997, MAAMAW.

[6]  W. C. Perkins,et al.  Can a Negotiation Support System Help a Purchasing Manager , 1996 .

[7]  William Vickrey,et al.  Counterspeculation, Auctions, And Competitive Sealed Tenders , 1961 .

[8]  Christof Weinhardt,et al.  Efficiency, Incentives, and Computational Tractability in Mas-Coordination , 1999, Int. J. Cooperative Inf. Syst..

[9]  Pattie Maes,et al.  Kasbah: An Agent Marketplace for Buying and Selling Goods , 1996, PAAM.

[10]  Katia P. Sycara,et al.  Bayesian learning in negotiation , 1998, Int. J. Hum. Comput. Stud..

[11]  Richard Engelbrecht-Wiggans,et al.  On a Possible Benefit to Bid Takers from Using Multi-Stage Auctions , 1988 .

[12]  R. Hansen.  Auctions with endogenous quantity , 1988 .

[13]  Pattie Maes,et al.  Agent-Mediated Integrative Negotiation for Retail Electronic Commerce , 1998, AMET.

[14]  Thomas A. Gresik,et al.  The rate at which a simple market converges to efficiency as the number of traders increases: An asymptotic result for optimal trading mechanisms , 1989 .

[15]  Jim R. Oliver.  A Machine-Learning Approach to Automated Negotiation and Prospects for Electronic Commerce , 1996, J. Manag. Inf. Syst..

[16]  Tuomas Sandholm,et al.  Approaches to winner determination in combinatorial auctions , 2000, Decis. Support Syst..

[17]  Elmar G. Wolfstetter.  AUCTIONS: AN INTRODUCTION , 1996 .

[18]  Nicholas R. Jennings,et al.  ADEPT-Advanced Decision Environment for Process Tasks: Overview & Architecture , 1994 .

[19]  Paul R. Milgrom,et al.  A theory of auctions and competitive bidding , 1982 .

[20]  Daniel F. Spulber,et al.  Managing procurement auctions , 1990 .

[21]  Ken Binmore,et al.  Applying game theory to automated negotiation , 1999 .

[22]  A. Rubinstein.  A BARGAINING MODEL WITH INCOMPLETE INFORMATION ABOUT TIME PREFERENCES , 1985 .

[23]  Ronald M. Harstad,et al.  Information Impact and Allocation Rules in Auctions with Affiliated Private Values: A Laboratory Study , 1987 .

[24]  William Samuelson,et al.  I Won the Auction But Don't Want the Prize , 1983 .

[25]  Christof Weinhardt,et al.  Auctions in Electronic Commerce - Efficiency versus Computational Tractability , 1998 .

[26]  Christof Weinhardt,et al.  Synergie und Koordination in dezentral planenden Organisationen , 1996, Wirtsch..

[27]  R. McAfee,et al.  Auctions and Bidding , 1986 .

[28]  Hal R. Varian,et al.  Economic Mechanism Design for Computerized Agents , 1995, USENIX Workshop on Electronic Commerce.

[29]  Yeon-Koo Che.  Design competition through multidimensional auctions , 1993 .

[30]  Ronald M. Harstad,et al.  Computationally Manageable Combinational Auctions , 1998 .

[31]  Tuomas Sandholm,et al.  An Implementation of the Contract Net Protocol Based on Marginal Cost Calculations , 1993, AAAI.

[32]  Michael P. Wellman,et al.  Flexible double auctions for electronic commerce: theory and implementation , 1998, Decis. Support Syst..