Intermediaries in an electronic trade network [Extended Abstract]

ABSTRACT

We investigate whether intermediaries can make a profit in an information economy. We use evolutionary agent-based simulations to address this issue. We model a trade network game where boundedly rational consumers have to decide which links to form to sellers (profit maximizing producers or intermediaries). Our main conclusion is that intermediaries that have better knowledge about the market than the average consumer will continue to exist and make a profit if market dynamics are sufficiently complex.

REFERENCES

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INDEX TERMS

Primary Classification:
  I. Computing Methodologies
  I.2 ARTIFICIAL INTELLIGENCE
        I.2.11 Distributed Artificial Intelligence
            Subjects: Intelligent agents

General Terms:
Algorithms, Design, Economics

Keywords:
evolutionary algorithms, intermediaries, trade networks