AuthorVragov, Roumen Dimitrov
AdvisorSmith, Vernon L.
MetadataShow full item record
PublisherThe University of Arizona.
RightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
AbstractThe purpose of this dissertation is the discovery of basic principles that govern the design of electronic markets. The advances in communication technology have given us the ability to create fully automated markets that can function twenty-four hours a day and that can accommodate the participation of software agents as proxies to decrease transactions costs and increase efficiency. While computers cannot fully replace humans, it is already the case that humans face competition from software agents in their daily market activities on the Internet. This dissertation examines an experimentally created, real-time electronic market for multiple units of a homogenous good that (1) accommodates the participation of software agents as both buyers and sellers, (2) offers its users a variety of institutions (rules) of exchange, and (3) is specifically designed to analyze the way different institutions, time costs, and software agent participation affects human behavior. The experiments show that it is possible to construct software agents using common patterns of human behavior in previously investigated similar market situations. These agents can then successfully become an integral part of a new electronic market environment. We notice that human market participants initially underestimate the software agents' ability to compete--a phenomenon that can lead to lower efficiency levels. Two factors are important in the choice of institution: the level of market information that the institution provides and its relative success in the initial phase of the trading period.
Degree ProgramGraduate College