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Next: Exogenous Buyer Decisions Up: Shopbot Economics Previous: Model

Analysis

 

We now present a game-theoretic analysis of our shopbot model, in which we derive the Nash equilibrium, assuming first that sellers are rational (i.e., profit maximizers), and later that buyers too are rational (i.e., utility maximizers). A Nash equilibrium is a vector of prices at which sellers maximize their individual profits, buyers maximize their individual utilities, and from which no agent has any incentive to deviate [15].





kephart
Mon Mar 20 09:23:33 EST 2000