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Using principles from Expected Utility Theory, we analyze the criteria that a customer agent in agent-based automated contracting would use in making decisions during the bidding cycle. We use the University of Minnesota's MAGNET automated-contracting environment as a framework for this analysis. Two decisions must be made by a customer agent during this process: deciding the composition of the Request for Quotes, and evaluating and awarding bids. We show how principles from Expected Utility Theory can be applied in a mixed-initiative environment, where user preferences control the decision-making process, and user decisions are final. Finally, we show how the market infrastructure can support agent decision-making by gathering and analyzing statistical data on activities in the market.
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Collins et al. (2000) studied this question.
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