A Fuzzy Reasoning Based Bidding Strategy for Continuous Double Auctions

Double continuous auction (CDA) is a popular market institution with multiple agents looking to procure or sell commodities (services) at any one time. It's often a large-scale open and dynamically changing marketplace. This paper develops a fuzzy reasoning based bidding strategy for autonomous agents to determine the best bid in given states of CDAs. Some essential market-driven factors, such as competition, trading opportunity, deadline and the eagerness to trade, are considered and formulated to determine the optimal configure for the important parameters in fuzzy heuristic rules of the strategy. Therefore the agents can adjust its bidding behaviors dynamically to be adaptive to the changing market circumstances of double auctions.