A NETWORK MODEL FOR PRICE STABILIZATION

Jun Kiniwa, Kensaku Kikuta

Abstract

We consider a simple network model for economic agents where each can buy commodities in the neighborhood. Their prices may be initially distinct in any node. However, by assuming some rules on new prices, we show that the distinct prices will be converged to unique by iterating buy and sell operations. If we consider the price determination process as a kind of consensus problem, we can apply the stabilization proof to it. So we first present a naive protocol in which each agent always offers half of the difference between his own price and the lowest price in the neighborhood, called max price difference. Then, we consider game theoretic price determination in two ways, that is, by using different payoff functions. Finally, we propose a protocol in which each agent makes a bid uniformly distributed over the max price difference.

References

  1. J. E. Stiglitz (1993). Principles of micro-economics. W.W.Norton & Company, New York, 1st edition.
  2. S. Dolev (2000). Self-stabilization. The MIT Press, Massachusetts, 1st edition.
  3. V. Krishna (2002). Auction theory. Academic Press, San Diego, 1st edition.
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Paper Citation


in Harvard Style

Kiniwa J. and Kikuta K. (2011). A NETWORK MODEL FOR PRICE STABILIZATION . In Proceedings of the 3rd International Conference on Agents and Artificial Intelligence - Volume 2: ICAART, ISBN 978-989-8425-41-6, pages 394-397. DOI: 10.5220/0003153803940397


in Bibtex Style

@conference{icaart11,
author={Jun Kiniwa and Kensaku Kikuta},
title={A NETWORK MODEL FOR PRICE STABILIZATION},
booktitle={Proceedings of the 3rd International Conference on Agents and Artificial Intelligence - Volume 2: ICAART,},
year={2011},
pages={394-397},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0003153803940397},
isbn={978-989-8425-41-6},
}


in EndNote Style

TY - CONF
JO - Proceedings of the 3rd International Conference on Agents and Artificial Intelligence - Volume 2: ICAART,
TI - A NETWORK MODEL FOR PRICE STABILIZATION
SN - 978-989-8425-41-6
AU - Kiniwa J.
AU - Kikuta K.
PY - 2011
SP - 394
EP - 397
DO - 10.5220/0003153803940397