Negotiation, Auctions, and Market Engineering (eBook)

Preface 5
Table of Contents 7
Market Engineering: A Research Agenda 9
Introduction – Design Matters 9
Interdisciplinary Research 12
An Engineering Framework 15
The Engineering Process 16
Outline of the Book 18
Conclusions 21
References 21
On Comparison of Mechanisms of Economic and Social Exchanges: The Times Model 24
Introduction 24
Auctions and Negotiations 27
Auctions 27
Negotiations 28
Hybrid Forms 29
Experimental and Field Studies 30
Auctions and Negotiations in Economics 30
Lessons Learned Form Economic Research 32
Information Systems Research 33
Lessons Learned from Information Systems Research 36
Mechanism and System Design 37
Basic Concepts and Theory Building 38
Design Research in IS 40
Convergence of IS and Economics Designs 41
TIMES Model 42
Basic Concepts and Dependencies of the TIMES Model 42
TIMES Constructs 44
Discussion and Future Work 46
References 47
A Decision Support System for Choosing Market Mechanisms in e-Procurement 52
Introduction 52
Computer Aided Market Engineering 53
Related Work 55
Knowledge Acquisition, Storage and Evaluation 57
System Design and Implementation 60
System Design 60
System Workflow for Recommendation Retrieval 61
Conclusion and Outlook 63
Applying Auction Theory to Procurement Auctions – An Empirical Study Among German Corporations 66
Introduction 66
Theoretical Background and Research Hypothesis 66
Empirical Research Approach 68
Results of the Empirical Study 69
Conclusions and Managerial Implications 71
References 74
On the Design of Simple Multi-unit Online Auctions 76
References 79
A Comparison Between Mechanisms for Sequential Compute Resource Auctions 80
Introduction 80
Buisness Scenarios 80
Related Work 81
Methods and Aparatus: A Render Utility Simulator 82
Infrastructure Model 82
Rendering Model 82
Auction Models 83
Bidding Strategies 85
Measuring Bidding Strategy Performance 85
Restricting the Space of Strategies Considered 85
PS Polynomial Family of Strategies 86
GV Polynomial Family of Strategies 86
Methods for Finding the Best Strategies 87
Results 87
Evolved Polynomial Bid Functions 88
Performance Data 88
Conclusion 90
MACE: A Multi-attribute Combinatorial Exchange 92
Introduction 92
Requirements Upon the Mechanism 93
Design Objectives 93
Domain-Specific Requirements 94
The MACE Mechanism 95
Bidding Language 96
Winner Determination 98
Pricing 101
Evaluation 103
Data Basis 104
Implementation 104
Results 105
Conclusion 106
Engineering Grid Markets 109
Introduction 109
Market Engineering 110
Environmental Analysis 112
Motivating Scenario 112
Requirement Analysis 113
Related Work 114
Tailoring a Market for Grid Services^{1} 116
Winner Determination Problem 118
Pricing Schemes 119
Concluding Remarks 122
References 122
Shaman: Software and Human Agents in Multiattribute Auctions and Negotiations 124
Introduction 124
Foundations 129
Decision Support Systems 129
Software Agents and MAS 130
Auction and Negotiation Protocols and Taxonomy 132
E-Markets and Other Meeting Places 134
Four Platforms 134
Invite e-Negotiation Platform 134
eNAs e-Negotiation Agency 138
meet2trade Auction Platform 141
GoGo Group-Buying Platform 145
Shaman Framework and Functions 150
Framework 150
The Use of Shaman 152
Local DSS 153
Conclusions 153
References 154
An Experiment on Investor Behavior in Markets with Nonlinear Transaction Fees 158
Introduction 158
Nonlinear Price Schedule Design 159
Types of Nonlinear Price Schedules 159
Caps and Floors 160
Design Parameters 161
Field Experiment 162
Motivation 162
Experimental Design 163
Hypotheses 165
Experimental Results 165
Number of Orders per Trader 165
Average Order Volume per Trader 166
Sensitivity to Transaction Fee Changes 167
Discussion 168
Conclusion and Outlook 169
References 170
Sellers Competing for Buyers in Online Markets 172
Introduction 172
Model of Competing Sellers 173
Analysis 173
Buyer Equilibrium Behaviour 174
Seller Equilibrium Behaviour 174
Auction Fees 176
Conclusion 178
A Bayesian Reputation System for Virtual Organizations 179
Introduction 179
Trust and Reputation Model 181
Taxonomy of TIs 181
Stochastic Model 183
Feedback 184
Conclusion and Future Work 185
Situated Decision Support Approach for Managing Multiple Negotiations 187
Introduction 187
Background 188
Agent-Based Negotiations 188
Multi-bilateral Negotiations 189
Situated Decision Support Framework for Managing Multiple Negotiations 189
Simulations 191
Conclusions 195
References 196
Optimal Financially Constrained Bidding in Multiple Simultaneous Auctions 198
Introduction 198
Related Work 199
Bidding in Multiple Auctions 199
The Auctions 200
Global and Local Bidders 200
Best Response Strategies with Budget Constraints 200
Conclusion 206
Bidding Strategies for Multi-object Auctions 208
Introduction 208
The Auction Setting 209
Single Object 209
Multiple Objects 210
Equilibrium Bidding Strategies 211
Single Object 211
Multiple Sequential Auctions 213
Multiple Simultaneous Auctions 217
Related Work 218
Conclusions and Future Work 219
Cognitive Biases in Negotiation Processes 221
Introduction 221
Negotiation Process Model 222
Negotiation as a Communication Process 222
Refined Process Model 223
Agent Decision-Making Model 225
Cognitive Biases in Negotiations 226
Summary 230
On the Forecast Accuracy of Sports Prediction Markets 235
Introduction 235
Related Work 236
STOCCER – A 2006 FIFA World Cup Prediction Market 237
The FIFA World Cup 2006 237
The STOCCER Exchange 237
Evaluation of the Forecast Accuracy 240
Summary 241
References 242
Author Index 243