Auctions

If AI agents become the economy’s new workforce, what keeps their markets from melting into ours like solder—fast, hot, and hard to undo? DeepMind’s “Virtual Agent Economies” proposes a practical map (and a modest constitution) for that future: treat agent markets as sandboxes and tune their permeability to the human economy. Once you see permeability as the policy lever, the rest of the architecture falls into place: auctions to resolve clashes, mission-led markets to direct effort, and identity rails so agents can be trusted, priced, and sanctioned. ...

As large language models (LLMs) evolve from passive tools into autonomous market participants, a critical question emerges: can they secretly coordinate in ways that harm fair competition? A recent paper titled Evaluating LLM Agent Collusion in Double Auctions explores this unsettling frontier, and its findings deserve attention from both AI developers and policy makers. The study simulates a continuous double auction (CDA), where multiple buyer and seller agents submit bids and asks in real-time. Each agent is an LLM-powered negotiator, operating on behalf of a hypothetical industrial firm. Sellers value each item at $80, buyers at $100, and trades execute when bids meet asks. The fair equilibrium price should hover around $90. ...