A Game-Theoretical Analysis of Charging Strategies for Competing Double Auction Marketplaces

Shi, Bing; Xiao, Li

doi:10.1007/978-3-030-66412-1_7

Cited by 1 publication

(1 citation statement)

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“…Cai et al analyzed the impact of different adaptive strategies on the trading strategy and its own earnings in the market competition environment [36]. Shi et al considered two different pricing strategies and analyzed how to adjust their pricing strategies to attract traders in two competing markets [37], and then they considered four typical types of fees in pricing strategies, to analyze the Nash equilibrium market selection in competing environment [38].…”

Section: Related Workmentioning

confidence: 99%

Trading and Pricing Sensor Data in Competing Edge Servers with Double Auction Markets

Shi

Song

2021

Journal of Sensors

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With the development of the IoT (Internet of Things), sensors networks can bring a large amount of valuable data. In addition to be utilized in the local IoT applications, the data can also be traded in the connected edge servers. As an efficient resource allocation mechanism, the double auction has been widely used in the stock and futures markets and can be also applied in the data resource allocation in sensor networks. Currently, there usually exist multiple edge servers running double auctions competing with each other to attract data users (buyers) and producers (sellers). Therefore, the double auction market run on each edge server needs efficient mechanism to improve the allocation efficiency. Specifically, the pricing strategy of the double auction plays an important role on affecting traders’ profit, and thus, will affect the traders’ market choices and bidding strategies, which in turn affect the competition result of double auction markets. In addition, the traders’ trading strategies will also affect the market’s pricing strategy. Therefore, we need to analyze the double auction markets’ pricing strategy and traders’ trading strategies. Specifically, we use a deep reinforcement learning algorithm combined with mean field theory to solve this problem with a huge state and action space. For trading strategies, we use the Independent Parametrized Deep Q-Network (I-PDQN) algorithm combined with mean field theory to compute the Nash equilibrium strategies. We then compare it with the fictitious play (FP) algorithm. The experimental results show that the computation speed of I-PDQN algorithm is significantly faster than that of FP algorithm. For pricing strategies, the double auction markets will dynamically adjust the pricing strategy according to traders’ trading strategies. This is a sequential decision-making process involving multiple agents. Therefore, we model it as a Markov game. We adopt Multiagent Deep Deterministic Policy Gradient (MADDPG) algorithm to analyze the Nash equilibrium pricing strategies. The experimental results show that the MADDPG algorithm solves the problem faster than the FP algorithm.

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Section: Related Workmentioning

confidence: 99%