Thanks in advance

Bidding Model in Java

Bidding for the rights to property or for the opportunity to render service is relatively pure type of competition. Opposing bidders compete for rights or opportunities under rules established by the party who puts the rights or opportunities up for bid. This aspect of competative behaviour has not been given much attention by Java programmers /researchers, maybe, owing to the fact that bidding strategies cannot be made public for reasons of industrial security etc.

Even though some of the simpler bidding problems can be solved through matrix algebra, situations where the number of bidders become large and may in fact be unknown, can not as yet be handled in this manner.

It is here that gives me scope for posing a question in the form of suggestion as to whether creating a Bidding Model in Java is possible, if so, what could be the best method for it.

Creating a class in Java, especially for a realistic situations like the above under different strategies from different objectives. Can we make Java more strategy oriented from that of the current Objective Orientation, using business strategies of bidding .When data objects are possible to be structured as models why not the strategies as well.

AS Always

C.R.Muthukumar

Ranch Hand

You might take this down to the OO, UML, etc. forum. The gang there often enjoys working through interesting design problems. We'll make you do all the heavy work ... this sounds like homework and you'll learn more by doing the hard bits.

A good question is never answered. It is not a bolt to be tightened into place but a seed to be planted and to bear more seed toward the hope of greening the landscape of the idea. John Ciardi

Originally posted by Stan James:

I'd surely have to guess that it's possible. I avoided math classes so I can't immediately see how you'd need matrix operations, but that's thinking too much of implementation before requirements. Could you describe some interactions between bidders and a bid manager? Maybe a few variations in bidding strategies?

You might take this down to the OO, UML, etc. forum. The gang there often enjoys working through interesting design problems. We'll make you do all the heavy work ... this sounds like homework and you'll learn more by doing the hard bits.

Hello

Normally a bidding transaction for a particular service or contract involves Bidders, Servicetype, BiddingPolicy, Crieterio for acceptance of a bid (an algorithmic formula basing on a strategical logic).Bidders can be one or more.This multiplicity in the model increases our comprehension of the nature and constraints of an associattion.Attempts to model bidding situations fall into two classes. On the one hand we may suppose that the strategy of a single bidder will not in the short run, influence his competitors and that their behaviour is statistically stable. Models of this type treat competitive bids as uncontrolled variables whose distribution is known. On the other hand models have been made that endeavour to use the concept of game theory to explain how bids should be made.This is where the above situations need your help.

Thanks

As always

C.R.Muthukumar

Ranch Hand

Plug-in strategies sounds like a design thing we could talk about. Again, take it down to the OO, UML, etc forum and engage the gang there.

A good question is never answered. It is not a bolt to be tightened into place but a seed to be planted and to bear more seed toward the hope of greening the landscape of the idea. John Ciardi

read this case study.. maybe it's not what your looking for but it might give you some ideas.

http://www.sun.com/service/about/success/ebay5.html

Ranch Hand

A good question is never answered. It is not a bolt to be tightened into place but a seed to be planted and to bear more seed toward the hope of greening the landscape of the idea. John Ciardi

Originally posted by Stan James:

Ah, algorithms I cannot help with at all. Music major. Sorry.

Plug-in strategies sounds like a design thing we could talk about. Again, take it down to the OO, UML, etc forum and engage the gang there.

Please find the following details of a bidding transaction that has been narrated down avoiding the maths in a way that i am sure or for that matter any java programmers to start a try on the subject viz Bidding model making

in Java, a first of its kind if made and would be useful as well.

The Bidding Strategy :

Two objects of value $00 & $130 are to be auctioned at a public sale Only two bidders are interested in these items . Bidder A has $ 100 available and bidder B has $ 80 avialable .What should be their startegies if each bidder is interested in maximising his own gain?

Solution:--

Let us assume for simplicity that successive bids increase in steps of deltx .At any stage of bidding a player has the option of letting his opponent's bid stand or of increasing it by $ deltx and leaving the next decision upto his opponent .Suppose that bidder B has just bid x dollars for the first Object .Let Alpha(x,0) be A's gain, if he lets B's bid stand --(1),

And Alpha(x, deltx) be A's gain if he increases the bid to x+ deltx and B lets him win --(2),

If A lets B take the first Object for x, then A is sure to win the second Object with a bid of 80 - x + deltx--------(3),

Since B's total capital is 80

Thus

Alpha(x-0) = 130-[80-x+deltx]= 50+x-deltx;

If A wins with a bid x + deltx then B will win the seond Object if x >= $20, with a bid of 130-(x+deltx)+deltx = 130- x;

Alpha(x ,deltx) = 100 - (x+deltx) = 100 - x- deltx;

We see that A should bid x + deltx provided 100 - x - deltx >= 50 + x - deltx;

ie) provided x<= 25 ;

If x>25,

A should let B win the first Object for that amount.

Player B has a similar decisions to make. If A has just bid x( and if x>= 20)

Then B's gaining Beta(x,0) and Beta(x detx)

are given by Beta(x,0)= 130-(100-x+deltx)=30+x-deltx;

Beta(x, deltx) = 100-(x+deltx) = 100 - x deltx;

So B should bid x+ deltx on item 1 provided x <= 35;

It is clear that B will take the less expensive Object for amount $ 25, and A will take the more expensive Object for about $55.Both parties end up with the same net gain and if the other than items were offered first the results would be exactly the same. The order of the items is immaterial in all such problems, regardless of the relative values of the two items and the relative resources of the competitors.The net gains will be the equal when conditions are such that the optimal strategies lead to a division of the two items between the competitors,

otherwise, ofcourse ,the net gain for one of the parties will be zero.

Thanking You

As Always

C.R.Muthukumar

Ranch Hand

This IBM Article describes the business a bit. And IBM and Random Walk are already doing it. You not only have to develop smart algorithms but you have to analyze the market and reverse engineer your competitors algorithms and develop new ones to defeat those. On the fly. Sounds fun.

Originally posted by Stan James:

I saw some more on this topic since last we posted ... Google "Java algorithmic trading" and get a lot of job listings. No products offered because this kind of thing tends to be competitive and proprietary.

This IBM Article describes the business a bit. And IBM and Random Walk are already doing it. You not only have to develop smart algorithms but you have to analyze the market and reverse engineer your competitors algorithms and develop new ones to defeat those. On the fly. Sounds fun.

A penny saved is a penny earned ..This is true as long as we adhere to it.

On these lines please find herewith a typical application program in Java that was exactly suitable for the suject discussed above . Pl try to add

values to this and enhance the same for a mutiple no of bidders as for exampe.(AuctionBid.txt)

In that way will be adhering to the economical strategy and at the same time making the solutions to the needy Java Programmers atleast for further development.

Thanking you

As Always

C.R.Muthukumar