Betting, bribery, and bankruptcy-a simulated economy that learns topredict
Kaehler, T.; Nash, H.; Miller, M.S.
COMPCON Spring apos;89. Thirty-Fourth IEEE Computer Society International Conference: Intellectual Leverage, Digest of Papers.
Volume , Issue , 27 Feb-3 Mar 1989 Page(s):357 - 361
Digital Object Identifier 10.1109/CMPCON.1989.301956
Summary:Derby is a collection of independent computational entities that
exchange money for work and information in the course of solving some
problem. The key to building an agoric system is to design a monetary
incentive structure that forces the individual entities to cooperate and
work on the user's problem. While building Derby the authors discovered
that it is very useful to think of the entities as being opportunistic
and uncooperative. In Derby, information is traded in marketplaces, with
sellers issuing predictions and placing bets on their correctness at
predicting incoming data streams. Buyers submit bids of how much they
are willing to pay for each dollar of bet placed. A sealed-bid
second-price double auction determines which bidders are accepted.
Later, the buyers report how happy they were with the information they
bought, and this determines each seller's winnings in the parimutuel
betting pool
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