A model-free approach for a TAC-AA trading agent

Mariano Schain, Shai Hertz, Yishay Mansour

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

We describe a model-free approach to bidding in the Ad-Auctions Trading Agents Competition: First, a simple and robust yet high-performing agent using a Regret Minimization optimization algorithm for the 2010 competition, followed by our top performing agent for the 2011 competition, still using simplified modeling and optimization methods. Specifically, we model the user populations using particle filters, but base the observations on a Nearest Neighbor estimator (instead of game specific parameters). We implement a simple and effective bid optimization algorithm by applying the equimarginal principle combined with perplexity-based regularization. The implementation of our 2011 agent also remains model-free in the sense that we do not attempt to model the competing agents behavior for estimating costs and associated game parameters.

Original languageEnglish
Title of host publicationAgent-Mediated Electronic Commerce
Subtitle of host publicationDesigning Trading Strategies and Mechanisms for Electronic Markets - AMEC and TADA 2012, Revised Selected Papers
EditorsEsther David, Valentin Robu, Sebastian Stein, Christopher Kiekintveld, Onn Shehory
PublisherSpringer Verlag
Pages119-132
Number of pages14
ISBN (Print)9783642408632
DOIs
StatePublished - 2013
EventInternational Workshop on Agent-Mediated Electronic Commerce and Trading Agent Design and Analysis, AMEC/TADA 2012 - Valencia, Spain
Duration: 4 Jun 20124 Jun 2012

Publication series

NameLecture Notes in Business Information Processing
Volume136

Conference

ConferenceInternational Workshop on Agent-Mediated Electronic Commerce and Trading Agent Design and Analysis, AMEC/TADA 2012
Country/TerritorySpain
CityValencia
Period4/06/124/06/12

All Science Journal Classification (ASJC) codes

  • Control and Systems Engineering
  • Management Information Systems
  • Business and International Management
  • Information Systems
  • Modelling and Simulation
  • Information Systems and Management

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