Decision Model and Simulation for Autonomous Lenient Bidding in Shariah-based E-Auction

Norleyza Jailani, Muriati Mukhtar
Center for Software Technology and Management, Faculty of Information Science and Technology, Universiti Kebangsaan Malaysia

Mohammed Al-aaidroos
Seiyoun Community College


Auction outcomes can be more efficient when bidders’ preferences are altruistic rather than selfish specifically for sustainable model which go beyond self-interest. This paper introduces a novel altruistic model inspired by the concept of Islamic leniency to promote benevolent acts between auction participants through a bidding strategy that relies on Falah decision model that reflects Islamic leniency values. In this model, the altruistic utility is used to simulate empathy and replace the egoistic behaviour, while lexicographic preference introduces the levels of satiations where the agent stops maximizing his utility. Software agents implemented using the Jade platform are utilized to represent bidders’ and sellers’ behaviours. We conducted simulations to demonstrate i) selfish bidders behaviour, ii) altruism behaviour towards selfish seller in dire need (daruriyat) and iii) altruism towards other bidder who is the current winner. In all selfish bidders simulation, competition increased with number of bidders. In simulation ii) winning prices are higher compared to all selfish bidders since bidders feel emphaty towards seller. Findings from the simulation iii) shows that as altruistic perception increased, auction becomes more efficient since the number of bids submitted decreased which means less competition between bidders even though the other bidders behave selfishly. The simulations on the proposed Falah-based bidding strategy proves its worthiness to soften auction competition and promote Islamic values compared to the conventional utilitarian decision model.

Keywords: Altruism, Bidding strategy, Lexicographic preference, Sharia compliant, Software agent