Adaptive Market Design with Linear Charging and Adaptive k-Pricing Policy

We describe a possible design strategy for a market specialist in the TAC Market Design Competition. Specifically, we describe both a linear charging policy that steadily increases the fees charged to trading agents interacting with the market, and an adaptive pricing policy that alters the trading price of goods based on the relative numbers of buyers and sellers in the market and the previous history of the market condition. We offer up two different sets of experimental data, the first to illustrate some basic properties about successful markets in the Market Design Competition, and the second to show the relative superiority of our chosen strategies over several possible alternatives.