Artificial software agents on thin double auction markets - A human trader experiment

Jens Grossklags, Carsten Schmidt

Research output: Chapter in Book/Report/Conference proceedingConference contribution

12 Scopus citations

Abstract

This paper studies how software agents influence the market behavior of human traders. Software agents with a passive arbitrage seeking strategy are introduced in a double auction market experiment with human subjects in the laboratory. As a treatment variable, the influence of information on the existence of software agents is investigated. We found that common knowledge about the presence of software agents triggers more efficient market prices when the programmed strategy was employed whereas an effect of the information condition on behavioral variables could not be observed. Surprisingly, the introduction of software agents results in lower market efficiency in the no information treatment when compared to the baseline treatment without software agents.

Original languageEnglish (US)
Title of host publicationProceedings - IEEE/WIC International Conference on Intelligent Agent Technology, IAT'03
Pages400-410
Number of pages11
StatePublished - Dec 1 2003
Event2003 IEEE/WIC International Joint Conference on Intelligent Agent Technology and Web Intelligence, IAT'03 and WI'03 - Halifax, NS, Canada
Duration: Oct 13 2003Oct 17 2003

Publication series

NameProceedings - IEEE/WIC International Conference on Intelligent Agent Technology, IAT'03

Other

Other2003 IEEE/WIC International Joint Conference on Intelligent Agent Technology and Web Intelligence, IAT'03 and WI'03
CountryCanada
CityHalifax, NS
Period10/13/0310/17/03

All Science Journal Classification (ASJC) codes

  • Artificial Intelligence

Fingerprint Dive into the research topics of 'Artificial software agents on thin double auction markets - A human trader experiment'. Together they form a unique fingerprint.

  • Cite this

    Grossklags, J., & Schmidt, C. (2003). Artificial software agents on thin double auction markets - A human trader experiment. In Proceedings - IEEE/WIC International Conference on Intelligent Agent Technology, IAT'03 (pp. 400-410). [1241109] (Proceedings - IEEE/WIC International Conference on Intelligent Agent Technology, IAT'03).