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Experiment report: reputation_decay

The follow-up to the reputation experiment. Ten agents start reliable (reliability 0.98) and drop to 0.3 when task 200 of 600 arrives. Risk-adjusted selection uses full-history or decaying reputation.

Hypothesis

Decaying reputation notices the drop sooner, so it raises completion rate over full history once agents change.

Experimental setup

  • Replications: 30 per arm (common random numbers across arms)
  • Seed: 29
  • AuctionSI 0.1.1, Python 3.12.15, git commit 0162c05e54894a8575355e5fb4d3f5d47dd18a08+dirty
  • Baseline arm: full_history
  • Confidence level: 95%; alpha: 0.05

Parameters

  • Agents: {'count': 30, 'capabilities': ['research', 'data_analysis', 'sql', 'optimization'], 'capability_distribution': 'mixed', 'capabilities_per_agent': (1, 3), 'cost_distribution': 'lognormal', 'variable_cost_ratio': 0.01, 'quality_distribution': 'beta', 'quality_spread': 0.05, 'latency_distribution': 'lognormal', 'reliability_distribution': {'name': 'uniform', 'low': 0.85, 'high': 1.0}, 'capacity_distribution': 1, 'strategy': 'cost_plus', 'quality_report_bias': 0.0}
  • Tasks: {'count': 600, 'task_types': ['research', 'data_analysis', 'sql', 'optimization'], 'arrival_rate': 1.0, 'budget_distribution': 'lognormal', 'deadline_distribution': 'uniform', 'complexity_distribution': 'lognormal', 'min_quality': None, 'value_multiplier': 1.5}
  • Defaults: mechanism=first_price_reverse, policy={'name': 'risk_adjusted_cost', 'newcomer_failure_probability': 0.2, 'min_observations': 3}, reputation=multi_dimensional, settlement=pay_on_pass

Arms

  • full_history: {'reputation': {'name': 'multi_dimensional'}}
  • decay_half_life_20: {'reputation': {'name': 'multi_dimensional', 'decay': {'name': 'exponential', 'half_life': 20}}}
  • decay_half_life_5: {'reputation': {'name': 'multi_dimensional', 'decay': {'name': 'exponential', 'half_life': 5}}}

Results

completion_rate

arm n mean 95% CI sd median
full_history 30 0.8411 [0.8285, 0.8536] 0.03361 0.8475
decay_half_life_20 30 0.8486 [0.8368, 0.8603] 0.0314 0.8542
decay_half_life_5 30 0.8629 [0.853, 0.8729] 0.02667 0.8642

average_cost

arm n mean 95% CI sd median
full_history 30 0.03208 [0.03085, 0.03331] 0.003284 0.03161
decay_half_life_20 30 0.03228 [0.03107, 0.03349] 0.003245 0.03159
decay_half_life_5 30 0.03294 [0.03177, 0.03411] 0.003131 0.03222

buyer_utility

arm n mean 95% CI sd median
full_history 30 79.52 [77.93, 81.11] 4.257 79.77
decay_half_life_20 30 80.13 [78.61, 81.64] 4.046 80.01
decay_half_life_5 30 81.16 [79.86, 82.46] 3.48 81.67

hhi

arm n mean 95% CI sd median
full_history 30 0.07041 [0.06649, 0.07433] 0.01049 0.07089
decay_half_life_20 30 0.06958 [0.06589, 0.07327] 0.009893 0.06962
decay_half_life_5 30 0.06711 [0.06351, 0.0707] 0.009628 0.06731

Statistical tests

Paired t-tests on per-replication differences (treatment - baseline). Effect size is Cohen's d_z.

metric treatment mean diff CI relative d_z p p (Holm)
completion_rate decay_half_life_20 0.0075 [0.005527, 0.009473] +0.9% 1.42 1.42e-08 8.54e-08
average_cost decay_half_life_20 0.0001994 [9.284e-05, 0.0003059] +0.6% 0.699 0.000637 0.00127
buyer_utility decay_half_life_20 0.6019 [0.3572, 0.8467] +0.8% 0.918 2.34e-05 7.01e-05
hhi decay_half_life_20 -0.0008284 [-0.001407, -0.0002502] -1.2% -0.535 0.00654 0.00654
completion_rate decay_half_life_5 0.02189 [0.01722, 0.02656] +2.6% 1.75 1.69e-10 1.35e-09
average_cost decay_half_life_5 0.0008577 [0.0006716, 0.001044] +2.7% 1.72 2.49e-10 1.75e-09
buyer_utility decay_half_life_5 1.633 [1.114, 2.152] +2.1% 1.17 4.88e-07 2.44e-06
hhi decay_half_life_5 -0.003301 [-0.004452, -0.00215] -4.7% -1.07 2.31e-06 9.25e-06

Limitations

  • One abrupt change at a fixed time; gradual drift is not tested.
  • Results come from a synthetic market; agent costs, quality and reliability are drawn from the configured distributions, not measured from real agents.
  • Agents follow fixed (or simple adaptive) bidding strategies; real strategic agents may respond to the mechanism differently.
  • A non-significant difference is not evidence of equivalence.
  • P-values are Holm-adjusted across the comparisons in this report only.

Conclusion

  • In this simulated environment, decay_half_life_20 produced higher completion_rate than full_history (mean difference 0.0075, 95% CI [0.005527, 0.009473]).
  • In this simulated environment, decay_half_life_20 produced higher average_cost than full_history (mean difference 0.0001994, 95% CI [9.284e-05, 0.0003059]).
  • In this simulated environment, decay_half_life_20 produced higher buyer_utility than full_history (mean difference 0.6019, 95% CI [0.3572, 0.8467]).
  • In this simulated environment, decay_half_life_20 produced lower hhi than full_history (mean difference -0.0008284, 95% CI [-0.001407, -0.0002502]).
  • In this simulated environment, decay_half_life_5 produced higher completion_rate than full_history (mean difference 0.02189, 95% CI [0.01722, 0.02656]).
  • In this simulated environment, decay_half_life_5 produced higher average_cost than full_history (mean difference 0.0008577, 95% CI [0.0006716, 0.001044]).
  • In this simulated environment, decay_half_life_5 produced higher buyer_utility than full_history (mean difference 1.633, 95% CI [1.114, 2.152]).
  • In this simulated environment, decay_half_life_5 produced lower hhi than full_history (mean difference -0.003301, 95% CI [-0.004452, -0.00215]).