bidding strategy for entertainment ticket auctions - bhalchandra agashe

Bidding strategy for Entertainment Ticket Auctions

- Bhalchandra Agashe

Differentiating Characteristics of the Entertainment CDA

• Most Dynamic part of the TAC

• Scope for making substantial profit

How can the agent make profit ?

GivenValuation = V

Ask Price = Pa

Bid Price = Pb

Profit = Pa – V

Profit = V – Pb

Reference Profit (M)

• In order to make a buy/sell decision, the current profit has to be compared with some projected figure.

• How do we calculate this figure ?

Satisfactory Profit

• The profit that an agent is willing to settle for

• Why is this different from the reference profit ?

• Is it time dependent ?M(t) = M*w(t)

Satisfactory Profit

Seller’s strategy

Current profit = Pa – VSatisfactory profit = M(t)

When should the agent sell ?- Current profit >= satisfactory profit

Otherwise ?- Revise the ask price

Mertacor

“A long term profit seeking strategy”

• Two additional variables:– Target profit (Average profit to be made by the

end)– Mean (Average profit made so far)

Reference Profit = A*target + B*mean

Profit = Pa – 2*V

Mertacor

• Satisfactory Profit: M(t) = M * w(t)

How Mertacor fared at TAC 05 ?

Wrap up

Questions and/or Comments ?

Thank you!