Why do we need Learning?
Agents can use what they have learned to determine what to bid at an auction.
- They can modify their bids to account for the quality of the goods they have received, or to take advantage of the pecularities of the market (e.g. a monopoly or oligopoly).
By giving agents the power to learn we diminish the need for certification (i.e. “police”) agents.
- Agents watch out for themselves, enforcing their own individual preferences and taking advantage of others’ preferences and biases.
- If all (or most) of the agents agree that some particular agent is “cheating”, they will eventually drive him out of business by refusing to buy from him.