Evolution of Market Mechanism Through a Continuous Space of Auction-Types

Dave Cliff Information Infrastructure Laboratory HP Laboratories Bristol HPL-2001-326 December 14th , 2001*
E-mail: dave_cliff@hp.com

genetic algorithm, market mechanism, zip traders, market design, mechanism design

A continuous space of auction mechanisms is explored via a genetic algorithm, with ZIP artificial trading agents operating in the evolved markets. The space of possible auction-types includes the Continuous Double Auction and also two purely one-sided mechanisms, yet hybrids of these auction types can be found to give the most desirable market dynamics.

* Internal Accession Date Only Copyright Hewlett-Packard Company 2002

Approved for External Publication