Agent-Based Simulation in Market Engineering

The development of the internet has led to a renaissance of traditional auction mechanisms in electronic form. Electronic auctions are used in manifold ways, e.g. in procurement processes as well as in the C2C area. The design of electronic auctions is important since the microstructural rules affect the auctions’ outcome. Market Engineering is a structured approach to develop and study electronic markets. Agent-based simulations offer one possibility to assess electronic markets. The present work summarizes the dissertation of Clemens van Dinther [3] that brings together agent-based simulation and market engineering and applies it to the problem of strategic bidding under valuation uncertainty.