Agent-based auctions

The article discusses the technical challenges, business implications and research issues of agent based auctions. Electronic auctions are formalized communication procedures in which the traders' interaction is governed by specific auction rules (S. Klein, 1997). Usually, the auctioneer functions as an intermediary or agent for the sellers, but this does not have to be the case. The auction rules vary according to the trade objects and trade rules. Auctions are particularly suitable for those objects whose values are undetermined and cannot be priced directly; auctions offer an efficient mechanism in determining market prices. However, relatively fixed-priced objects can also be traded by simple one-sided auctions. In such a case, an ordinary e-commerce transaction can be seen just as a special case of an auction.