This paper provides an overview on the simulations andexperiments we have done in order to better understandhuman-agent interaction in a market environment. We findthat the introduction of software agents does not necessarilyinduce a more efficient market. More surprisingly,information on the...

This paper studies how software agents influence the market behavior ofhuman traders. Programmed traders with a passive arbitrage seekingstrategy are introduced in a double auction market experiment with humansubjects in the laboratory. As a treatment variable, the influence ofinformation on the...

Auctions on the Internet provide a new source of data on how bidding is influenced by the detailed rules of the auction. Here we study the second-price auction run by eBay and Amazon, in which a bidder submits a reservation price, and has this (maximum) price used to bid for him by proxy.[...]

The internet facilitates interactive and asynchronous communication among human and artificial agents in large bilateral markets. As a consequence, new institutional structures are emerging in the new economy. I discuss a few core problems associated with the economic design of internet markets...