Abstract:
A market is in equilibrium if there is no opportunity for
arbitrage, ie: risk-free, or low-risk, profit. The majority of real markets are
not in equilibrium. A project is investigating the market evolutionary
process in a particular electronic market that has been constructed in an
on-going collaborative research project between a university and a
software house. The way in which actors (buyers, sellers and others) use
the market will be influenced by the information available to them. In
this experiment, data mining and filtering techniques are used to distil
both individual signals drawn from the markets and signals from the
Internet into meaningful advice for the actors. The goal of this
experiment is first to learn how actors will use the advice available to
them to identify arbitrage opportunities, and second how the market will
evolve through entrepreneurial intervention. In this electronic market a
multiagent process management system is used to manage all market
transactions including those that drive the market evolutionary process.
