The interaction of Shopbots and Pricebots Xin Sui Nov 30, 2006

Shopbots – agents that automatically search the internet for goods and/or services on behalf of consumers (minimize costs for comsumer)

Shopbots How shopbots affect sellers? –if a seller doesn’t adjust their goods’ prices according to its competitors’, they may experience decreased sales and may give ground to its competitors. –It’s better for sellers to reprice their goods as quickly as possible

Pricebot Pricebot: Economically-motivated agents that set prices so as to maximize the profits of the sellers. The paper “shopbots and pricebots” conducted several experiments. Three strategies were considered. –GT: using information about buyers –MY: using information about buyers and its competitors’ prices –DF: not use information about buyers and its competitors’ prices 1. When a MY seller is involved in a DF or GT population, it outplays them 2. Faster price-setter earns more profit than others.

Pricebots need shopbots The strategy of Pricebots may most likely needs the knowledge of competitors’ prices. How to get such info? shopbots. Where to get shopbots? –If the sellers build shopbots by themselves Overload their competitors’ web sites, so their accesses will be prevented by their competitors –if the sellers use shopbots provided by other companies Overload shopbots, hinder human buyers, so their accesses will be prevented by those shopbots

What is the solution Charging for price information service –For shopbot, charging pricebots for price information –For sellers, charging shopbot for price information Is there any other solution?

Discussion What kind of sellers will get more money by selling price information? What kind of sellers will acquire less price information so that pay less money on it? Is the money by selling information fee earned by a seller less than that it pay for acquiring price information? If less, does the difference between them increase the price of their goods or reduce its profits? If more, does the difference between them increase its profits?