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Colloquium - Tesauro

ECCR 139

Bots vs. Humans in the Continuous Double Auction
Gerry Tesauro
IBM Thomas J. Watson Research Center

The Continuous Double Auction (CDA) is the dominant market institution for real-world trading of securities, commodities, derivatives, etc. This talk describes a recent series of laboratory experiments that, for the first time, allowed human subjects to interact with software bidding agents in a simulated CDA market. Our bidding agents used strategies based on extensions of the recently published Gjerstad-Dickhaut (1998) and Zero-Intelligence-Plus (Cliff, 1997) algorithms. Surprisingly, agents obtained a consistently large edge in profitability over humans in each of the experiments. This was unexpected because efficiencies in previous all-human CDA experiments were extremely close to theoretical perfection. Another unexpected finding is persistent far-from-equilibrium trading; this differs from the robust convergence to equilibrium in previous all-human or all-agent experiments. In this talk, we consider possible explanations for these empirical findings, and speculate on the implications for future agent-human interactions in large e-commerce marketplaces.

Hosted by Michael Mozer.
Refreshments will be served immediately following the talk in ECOT 831.

The Department holds colloquia throughout the Fall and Spring semesters. These colloquia, open to the public, are typically held on Thursday afternoons, but sometimes occur at other times as well. If you would like to receive email notification of upcoming colloquia, subscribe to our Colloquia Mailing List. If you would like to schedule a colloquium, see Colloquium Scheduling.

Sign language interpreters are available upon request. Please contact Stephanie Morris at least five days prior to the colloquium.

See also:
Department of Computer Science
College of Engineering and Applied Science
University of Colorado Boulder
Boulder, CO 80309-0430 USA
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