Negotiation Mechanisms
What is an Auction?
- Set of rules for determining price and/or allocation
- Enforces a protocol
Auction framework provides structured, yet flexible market infrastructure which promotes automated negotiation:
- Mediated vs. Unmediated
- Buyers do not have to separately find & contact every seller
- Price vs. Barter
- Price minimizes communication between agents
- Formal vs. Informal
- Standardized offers simplify communication between agents