The interaction of Shopbots and Pricebots

1
The interaction of Shopbots and Pricebots

• Xin Sui
• Nov 30, 2006

2
Shopbots

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

http//www.pricescan.com
3
Shopbots

• How shopbots affect sellers?
• if a seller doesnt adjust their goods prices
  according to its competitors , they may
  experience decreased sales and may give ground to
  its competitors.
• Its better for sellers to reprice their goods as
  quickly as possible

4
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.

5
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

6
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?

7
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?