In this paper, an approach to implement automated auctions as a negotiation mechanism for Business-to-Business electronic
commerce applications is presented. It is based on Genetic Algorithms (GAs) that evolve FSMs (Finite State Machines). Each
of these FSMs represents an auction strategy that competes on the market and is modified over time according to the outcome
of this competition by using GA principles. The paper gives an overview of auctions, especially in the Business-to-Business
domain, and other work related to this paper. Then, the application of Genetic Algorithms to automate auctions is presented
and relevant details on the prototype implementation are given. In addition, some key results obtained from experiments using
this implementation are discussed.
Keywords auctions - genetic algorithms - negotiation strategies - E-Commerce
This work is supported, in part, by grant no. La1061/1-2 from the German Research Council (Deutsche Forschungsgemeinschaft,
DFG)