Nobel Prize committee recognises the importance of auction strategy
The 2020 Nobel Prize in Economics was awarded to two professors for their contribution in auction theory. This shows how important an effective auction strategy is for a business transaction, which is an integral part of the world’s economy. While the two professors focus on the from-theory-to-application approach, RE Logic has taken a different method – improving the auction/negotiation strategy by artificial intelligence.
RE Logic’s AI negotiation platform is now able to learn
The state-of-the-art machine learning algorithm has been adopted to solve some of the unique problems in auctions. Our platform is now able to learn off line to produce an effective auction policy (actions).
To feed data to the platform, we have developed a model to simulate the bidding behavior of multiple bidders.
The scenario in which multiple bidders with deterministic but unknown bidding strategies were selected to bid against the AI platform. After learning from 1000 episoldes, the AI platform not only picked out the highest bidder, but also managed to extract the highest offer from this bidder under the bidding assumptions. A simple bidding strategy was identified by the AI platform to achieve the best possible result.
Our next target is to improve the AI platform so that it can deal with random bidders with unknown bidding strategies.
We welcome all forms of collaberation to commercialise our AI platform. To get in touch, email firstname.lastname@example.org.