E-Commerce Environments as 3D Electronic Institutions Anton Bogdanovych University of Technology Sydney Doctoral Assessment Supervisors: Simeon Simoff John Debenham Carles Sierra Helmut Berger

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 2 Outline MotivationMotivation ObjectivesObjectives BackgroundBackground 3D Electronic Institutions3D Electronic Institutions LearningLearning EvolutionEvolution SignificanceSignificance Research MethodResearch Method TimetableTimetable PublicationsPublications

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 3 Drawbacks in contemporary E-Commerce systems Motivation

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 4 Drawbacks in contemporary E-Commerce systems Poor product presentation and advertisementPoor product presentation and advertisement Information overloadInformation overload Inconsistency throughout different interfacesInconsistency throughout different interfaces Lack of Social interactionsLack of Social interactions Awareness of othersAwareness of others The needs of emotional customers are not addressed (Approximately 70% of all buying decisions are made by the shopper in the store - Progressive Grocer; 10/1/1996; Armata, Kevin )The needs of emotional customers are not addressed (Approximately 70% of all buying decisions are made by the shopper in the store - Progressive Grocer; 10/1/1996; Armata, Kevin ) Motivation

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 5 Research questions What technology to use for addressing the drawbacks of contemporary E-Commerce?What technology to use for addressing the drawbacks of contemporary E-Commerce? What methodology to apply?What methodology to apply? How to automate the process of creating of E-Commerce environmentsHow to automate the process of creating of E-Commerce environments How to facilitate the participation of software agents there and make them believable and intelligent?How to facilitate the participation of software agents there and make them believable and intelligent? How to permit the evolution of E-Commerce environments so that the new drawbacks can be identified and the solution to address them can be computed?How to permit the evolution of E-Commerce environments so that the new drawbacks can be identified and the solution to address them can be computed? Motivation

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 6 3D Electronic Institutions Allow Social Networking in E-CommerceAllow Social Networking in E-Commerce Offer Immersive and Consistent Business ExperienceOffer Immersive and Consistent Business Experience Support Innovative Product PresentationSupport Innovative Product Presentation Rely on Strong MethodologyRely on Strong Methodology Address the Needs of Emotional CustomersAddress the Needs of Emotional Customers Reduce information overloadReduce information overload Take Care of Keeping the Interactions of Participants SecureTake Care of Keeping the Interactions of Participants Secure Motivation

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 7 3D Electronic Institutions Motivation No methodological supportNo methodological support

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 8 Objectives Establishment of the 3D Electronic Institutions concept and applying it to the domain of E-Commerce (50% effort)Establishment of the 3D Electronic Institutions concept and applying it to the domain of E-Commerce (50% effort) User Modeling and Learning in 3D Electronic Institutions (45% effort)User Modeling and Learning in 3D Electronic Institutions (45% effort) Evolution of 3D Electronic Institutions (5% effort)Evolution of 3D Electronic Institutions (5% effort) Objectives

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 9 Expected contribution New methodology for design and implementation of the cutting edge E-Commerce EnvironmentsNew methodology for design and implementation of the cutting edge E-Commerce Environments New learning method for implicit training autonomous software agentsNew learning method for implicit training autonomous software agents New knowledge in the area of evolution of E-Commerce environmentsNew knowledge in the area of evolution of E-Commerce environments Prototypes that demonstrate the 3D Electronic Institutions concept and related learning issuesPrototypes that demonstrate the 3D Electronic Institutions concept and related learning issues Euclidian representation of 3D Virtual Worlds vs. non- Euclidian – a studyEuclidian representation of 3D Virtual Worlds vs. non- Euclidian – a study Objectives

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 10 3D Experience in E-Commerce Virtual experience vs direct and indirect experiences Terry M. Daugherty, Vanderbilt University, USA, 2001 Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 11 3D Experience in E-Commerce Mainly focused on product presentationMainly focused on product presentation 3D product presentation can be richer than 2D (but not always)3D product presentation can be richer than 2D (but not always) Technology centeredTechnology centered Sellers were never considered as active participantsSellers were never considered as active participants Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 12 3D store example Luca Chittaro, University of Udine, Italy, 2004 Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 13 Does 3D shopping make sense? Has more residents than Miami Has bigger GNP per capita than Bulgaria Norrath, The online world created by Sony Virtual worlds are one of a few online businesses that make money on the Web Edward Castronova, USA, 2003 Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 14 Project Entropia multi-user game: Virtual Island sold for USD Rights available to the purchaser of the island: - A unique castle (furniture not included) - Hunting (including native forms of wildlife) - Mining (both minerals and enmatters) - Taxation rights on hunting and mining activities on the island - Income from the sale of land lots. Five lots per month will be available for sale under the duration of one year. These 60 lots alone have an estimated market value of PED. - Massive revenue potential Treasure Island (6000 Acres/25 km²) Does 3D shopping make sense? Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 15 3D Virtual Worlds – future trends Scanning Physical interaction behaviors of 3D objects Dinesh K. Pai, The University of British Columbia, 2005 Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 16 3D Virtual Worlds – future trends Fast automated 3D Model Reconstruction Christian Frueh, University of California at Berkeley, 2005 Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 17 Electronic Institutions Electronic Institutions are „regulated“ Virtual Environments which allow Agents to interact autonomouslyElectronic Institutions are „regulated“ Virtual Environments which allow Agents to interact autonomously A Framework and Methodology developed by a Research Group led by Prof. Carles Sierra at the Artificial Intelligence Research Institute (IIIA), Barcelona, SpainA Framework and Methodology developed by a Research Group led by Prof. Carles Sierra at the Artificial Intelligence Research Institute (IIIA), Barcelona, Spain Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 18 Electronic Institutions Natural extension of the social concept of institutions as regulatory systems shaping human interactionsNatural extension of the social concept of institutions as regulatory systems shaping human interactions Software systems inhabited by autonomous entities = software agentsSoftware systems inhabited by autonomous entities = software agents Agents interact according to predefined conventions on language and protocolAgents interact according to predefined conventions on language and protocol Conventions guarantee that certain norms of behaviour are enforcedConventions guarantee that certain norms of behaviour are enforced Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 19 Electronic Institutions Conventions Conventions –on Language = Dialogical Framework –on Activities = Performative Structure –on Behaviour = Norms Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 20 Electronic Institutions Development Environment Common Ontology and language Agent Roles Multi-agent Protocols Network of protocols Norms Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 21 Learning - the vision Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 22 Learning – related work Mathias Bauer, German Research Center for AI (DFKI), 2000 Programming by demonstration Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 23 Learning – related work Aris Alissandrakis, University of Hertfordshire, UK, 2001 Carlos A. Acosta Calderon, University of Essex UK, 2005 Imitation Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 24 Learning – related work Daphna Buchsbaum, MIT Cambridge, 2005 Imitation in 3D Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 25 Learning – related work Ronan Le Hy, Montbonnot, France, 2004 Training Relevent Variables Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 26 Learning – related work Anton Bogdanovych & Mathias Bauer, German Research Center for AI (DFKI), 2004 Using trajectory to asses: Cognitive loadCognitive load Future behaviourFuture behaviour Significant locationsSignificant locations Background

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 27 3D Electronic Institutions 3DEI = 3DEI = where SP stands for Specification of the institution V stands for Visualization of the institution SP = SP = where DF stands for Dialogical Framework PS stands for Performative Structure N stands for Norms A stands for visualization related Annotations of the specification V = V = where R stands for Rooms T stands for Transition D stands for Doors IA stands for Internal Agents EA stands for External Agents VA stands for Visualization of the annotated content M stands for the map of the institution O stands for obligations of the participant towards the institution (visualized as a backpack)

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 28 3D Electronic Institution Architecture 3D Electronic Institutions

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 29 Generating 3D Electronic Institutions 3D Electronic Institutions

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 30 Generating 3D Electronic Institutions Two approaches: Euclidian Representation (rectangular dualization – Sara Drago, University of Udine, Italy)Euclidian Representation (rectangular dualization – Sara Drago, University of Udine, Italy) Non Euclidian (teleporting, shape grammars, Mary Lou Maher, Sydney University )Non Euclidian (teleporting, shape grammars, Mary Lou Maher, Sydney University ) 3D Electronic Institutions

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 31 Runtime Architecture 3D Electronic Institutions

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 32 Runtime Architecture 3D Electronic Institutions

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 33 Learning – what to learn? Position + time = trajectory, velocityPosition + time = trajectory, velocity Eye direction, head rotation = visible itemsEye direction, head rotation = visible items CollisionsCollisions Positions of the othersPositions of the others GesturesGestures ActionsActions TextText Distance to objectsDistance to objects Learning

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 34 Whom to train? Learning

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 35 Learning – proposed approach Background knowledge = 3DBackground knowledge = 3D Context = Dialogue + 3D HistoryContext = Dialogue + 3D History Agent states:Agent states: State α = State α = Possible events:Possible events: events = events = Limitations: 3D related knowledge onlyLimitations: 3D related knowledge only Possible techniques: Decision trees, Bayesian programmingPossible techniques: Decision trees, Bayesian programming Learning

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 36 Evolution of 3D Electronic Institutions Evolution is the implication of learningEvolution is the implication of learning Based on observing the behavior of participants to understand how the institution should be changed to make the interactions inside more efficientBased on observing the behavior of participants to understand how the institution should be changed to make the interactions inside more efficient Includes changes in the visualization as well as changes in the specificationIncludes changes in the visualization as well as changes in the specification May happen automaticallyMay happen automatically Evolution

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 37 Evolution of 3D Electronic Institutions Luca Chittaro, University of Udine, Italy, 2004 Evolution

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 38 Significance Multiagent systems – bringing humans into Electronic Institutions, visualization of EI metaphor, Evolution of Electronic InstitutionsMultiagent systems – bringing humans into Electronic Institutions, visualization of EI metaphor, Evolution of Electronic Institutions E-Commerce – new generation social shopping environments, advanced shopping assistantsE-Commerce – new generation social shopping environments, advanced shopping assistants Learning – implicit training and learning in 3D Virtual WorldsLearning – implicit training and learning in 3D Virtual Worlds Virtual Worlds – structured interactions, a new methodology for design and development, better design can be achieved with evolutionVirtual Worlds – structured interactions, a new methodology for design and development, better design can be achieved with evolution Significance

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 39 Research method To develop the concept of 3D Electronic Institutions - basic exploratory research, applied descriptive research.To develop the concept of 3D Electronic Institutions - basic exploratory research, applied descriptive research. To develop technological support for 3D Electronic Institutions - applied descriptive researchTo develop technological support for 3D Electronic Institutions - applied descriptive research Experimental validation of 3D Electronic Institution metaphorExperimental validation of 3D Electronic Institution metaphor To highlight the advantages of 3D Electronic Institutions as applied to E-Commerce - applied explanatory researchTo highlight the advantages of 3D Electronic Institutions as applied to E-Commerce - applied explanatory research Research Method

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 40 Research method To develop mechanisms for collection of data about the behavior of the players in 3D Electronic Institutions - applied exploratory researchTo develop mechanisms for collection of data about the behavior of the players in 3D Electronic Institutions - applied exploratory research To develop methods for learning from user behavior in such institutions - basic descriptive as well as applied exploratory researchTo develop methods for learning from user behavior in such institutions - basic descriptive as well as applied exploratory research To identify measures for comparison and evaluation of the efficiency of learning - applied exploratory researchTo identify measures for comparison and evaluation of the efficiency of learning - applied exploratory research Exploration of the evolution issues in 3D Electronic Institutions - basic exploratory researchExploration of the evolution issues in 3D Electronic Institutions - basic exploratory research Research Method

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 41 Timetable Timetable

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 42 Publications A. Bogdanovych, H. Berger, S. Simoff and C. Sierra: Implicit Training of Virtual Shopping Assistants. Proceedings of the E-Commerce 2005 conference (EC2005), Porto, Portugal, IADIS Press Under Review.A. Bogdanovych, H. Berger, S. Simoff and C. Sierra: Implicit Training of Virtual Shopping Assistants. Proceedings of the E-Commerce 2005 conference (EC2005), Porto, Portugal, IADIS Press Under Review. A. Bogdanovych, H. Berger, S. Simoff and C. Sierra: Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals. In Proceedings of the 13th International Conference on Information Technologies in Tourism (ENTER'06), Lausanne, Switzerland, January Accepted for publicationA. Bogdanovych, H. Berger, S. Simoff and C. Sierra: Travel Agents vs. Online Booking: Tackling the Shortcomings of Nowadays Online Tourism Portals. In Proceedings of the 13th International Conference on Information Technologies in Tourism (ENTER'06), Lausanne, Switzerland, January Accepted for publication A. Bogdanovych, H. Berger, C. Sierra and S. Simoff: Narrowing the Gap between Humans and Agents in E-Commerce: 3D Electronic Institutions. In Proceedings of the 6th International Conference on Electronic Commerce and Web Technologies (EC-Web'05), Copenhagen, Denmark, Lecture Notes in Computer Science 3590 Springer 2005, ISSN , pp A. Bogdanovych, H. Berger, C. Sierra and S. Simoff: Narrowing the Gap between Humans and Agents in E-Commerce: 3D Electronic Institutions. In Proceedings of the 6th International Conference on Electronic Commerce and Web Technologies (EC-Web'05), Copenhagen, Denmark, Lecture Notes in Computer Science 3590 Springer 2005, ISSN , pp A. Bogdanovych, H. Berger, C. Sierra, S. Simoff: Humans and Agents in 3D Electronic Institutions. Proceedings of the Fourth International Joint Conference on Autonomous Agents and Multi Agent Systems (AAMAS'05), Utrecht, Netherlands, 2005.A. Bogdanovych, H. Berger, C. Sierra, S. Simoff: Humans and Agents in 3D Electronic Institutions. Proceedings of the Fourth International Joint Conference on Autonomous Agents and Multi Agent Systems (AAMAS'05), Utrecht, Netherlands, A. Bogdanovych, H. Berger, S. Simoff and C. Sierra: E-Commerce Environments as 3D Electronic Institutions. Proceedings of the E-Commerce 2004 conference (EC2004), pp , ISBN: , Lisbon, Portugal, IADIS Press 2004.A. Bogdanovych, H. Berger, S. Simoff and C. Sierra: E-Commerce Environments as 3D Electronic Institutions. Proceedings of the E-Commerce 2004 conference (EC2004), pp , ISBN: , Lisbon, Portugal, IADIS Press A. Bogdanovych, H. Berger, S. Simoff and C. Sierra: 3D Electronic Institutions: Social Interfaces for E- Commerce. In 2nd European Workshop on Multi-Agent Systems (EUMAS 2004), Barcelona, Spain, 2004.A. Bogdanovych, H. Berger, S. Simoff and C. Sierra: 3D Electronic Institutions: Social Interfaces for E- Commerce. In 2nd European Workshop on Multi-Agent Systems (EUMAS 2004), Barcelona, Spain, Publications

Anton Bogdanovych, Doctoral Assessment E-Commerce Environments as 3D Electronic Institutions 43 Research visits December German Research Center for Artificial Intelligence (DFKI), Saarbruecken, GermanyDecember German Research Center for Artificial Intelligence (DFKI), Saarbruecken, Germany January Artificial Intelligence Research Institute (IIIA-CSIC), Barcelona, SpainJanuary Artificial Intelligence Research Institute (IIIA-CSIC), Barcelona, SpainForthcoming: December Department of Computer and Information Science (DISI), University of Genoa, ItalyDecember Department of Computer and Information Science (DISI), University of Genoa, Italy January Artificial Intelligence Research Institute (IIIA-CSIC), Barcelona, SpainJanuary Artificial Intelligence Research Institute (IIIA-CSIC), Barcelona, Spain Publications