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Long-term Coalitions for the Electronic Marketplace

This paper presents a detailed overview on coalition formation mechanisms developed in the areas of game theory, distributed artificial intelligence, and electronic commerce. Further it proposes a concept of long-term coalitions for the electronic marketplace based on nurturing customer-vendor relationships. Because trust is an important factor in any form of commercial interactions we use trust-based relationships between agents to model other agents and to help an agent when faced with the decision of joining or leaving a coalition. Detailed microscopic (agent level) description of the proposed coalition formation mechanism based on trust relationships between agents is provided.