eMediator: A Next Generation Electronic Commerce Server

eMediator, a next generationelectronic commerce server, demonstrates waysin whichAI, algorithmic support, gametheoretic incentive engineering, and GUIdesign can jointly improvethe efficiency of ecommerce. Thefirst component, eAuctionHouse, is a configttrable auction housethat supports a large variety of parameterizable auction types. It supports generalized combinatorial auctions with newalgorithms for winnerdetermination. It also allows bidding via graphically drawn price-quantity graphs. It has an expert systemfor helping the user decide whichauction type to use. Finally, it supports mobilesoftware agents that bid optimally on the user’s behalf based on gametheoretic analyses. The second component, eCommitter, is a leveled commitmentcontract optimizer. In automatednegotiation systemsconsisting of self-interested agents, contracts have traditionally been binding. Leveled commitment contracts--i. e, contracts whereeach party can decommit by paying a predeterminedpenalty--were recently shownto improvePareto efficiency even if agents rationally decommit in Nashequilibrium using inflated thresholds onhowgoodtheir outside offers mustbe before they decommit, eCommittersolves the Nashequilibrium thresholds. Furthermore, it optimizes the contract price and decommitment penalties themselves.

Authors

• Tuomas Sandholm Carnegie Mellon University, Computer Science Department, Pittsburgh, USA Strategy Robot, Inc. Strategic Machine, Inc. Optimized Markets, Inc.
• Washington University

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