text: We present a method for solving service allocation problems in which a set of services must be allocated to a set of agents so as to maximize a global utility. The method is completely distributed so it can scale to any number of services without degradation. We first formalize the service allocation problem and then present a simple hill-climbing, a global hill-climbing, and a bidding-protocol algorithm for solving it. We analyze the expected performance of these algorithms as a function of various problem parameters such as the branching factor and the number of agents. Finally, we use the sensor allocation problem, an instance of a service allocation problem, to show the bidding protocol at work. The simulations also show that phase transition on the expected quality of the solution exists as the amount of communication between agents increases.
  @cite_0: 
  @cite_10: Abstract We envision a future in which the global economy and the Internet will merge, evolving into an information economy bustling with billions of economically motivated software agents that exchange information goods and services with humans and other agents. Economic software agents will differ in important ways from their human counterparts, and these differences may have significant beneficial or harmful effects upon the global economy. It is therefore important to consider the economic incentives and behaviors of economic software agents, and to use every available means to anticipate their collective interactions. We survey research conducted by the Information Economies group at IBM Research aimed at understanding collective interactions among agents that dynamically price information goods or services. In particular, we study the potential impact of widespread shopbot usage on prices, the price dynamics that may ensue from various mixtures of automated pricing agents (or “pricebots”), the potential use of machine-learning algorithms to improve profits, and more generally the interplay among learning, optimization, and dynamics in agent-based information economies. These studies illustrate both beneficial and harmful collective behaviors that can arise in such systems, suggest possible cures for some of the undesired phenomena, and raise fundamental theoretical issues, particularly in the realms of multi-agent learning and dynamic optimization.
  @cite_2: Agent architectures need to organize themselves and adapt dynamically to changing circumstances without top-down control from a system operator. Some researchers provide this capability with complex agents that emulate human intelligence and reason explicitly about their coordination, reintroducing many of the problems of complex system design and implementation that motivated increasing software localization in the first place. Naturally occurring systems of simple agents (such as populations of insects or other animals) suggest that this retreat is not necessary. This paper summarizes several studies of such systems, and derives from them a set of general principles that artificial multi-agent systems can use to support overall system behavior significantly more complex than the behavior of the individuals agents. Copyright Kluwer Academic Publishers 1997
summary: The task allocation problem has been studied in @cite_0 , but the service allocation problem we present in this paper has received very little attention. There is also work being done on the analysis of the dynamics of multiagent systems for other domains such as e-commerce @cite_10 and automated manufacturing @cite_2 . It is possible that extensions to our approach will shed some light into the dynamics of these domains.