HP Labs Technical Reports

Arbitrageurs in Segmented Markets

van Montfort, George P.R.; Bruten, Janet; Rothkrantz, Leon

HPL-97-120

Keyword(s): minimally complex autonomous software bargaining agents; agent-based economics

Abstract: This paper describes a system of autonomous software agents able to engage in bargaining in an electronic market. The introduction of arbitrageurs is shown to have a stabilising effect on prices in segmented markets. This type of agent could be used in applications such as market-based control, electronic commerce and economic modelling. The paper describes the need for arbitrage in segmented markets and reports the results of simulating experiments with different market structures.

5 Pages

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