Evaluation of Agents under Simulated AI Marketplace Dynamics
To Eun Kim, Alireza Salemi, Hamed Zamani, Fernando Diaz
TLDR
This paper introduces Marketplace Evaluation, a simulation-based paradigm to assess AI systems in competitive marketplace dynamics, moving beyond static benchmarks.
Key contributions
- Highlights that current AI evaluation overlooks competitive marketplace dynamics and user behavior.
- Proposes 'Marketplace Evaluation,' a simulation framework for assessing AI systems in competition.
- Simulates repeated interactions and evolving preferences for longitudinal system assessment.
- Measures marketplace-level metrics like retention and market share, extending traditional accuracy.
Why it matters
This paper addresses a critical gap in AI evaluation by moving beyond isolated system performance to consider real-world competitive environments. It offers a novel simulation framework to predict post-deployment success and understand market dynamics, which is crucial for developing robust and successful AI agents.
Original Abstract
Modern information access ecosystems consist of mixtures of systems, such as retrieval systems and large language models, and increasingly rely on marketplaces to mediate access to models, tools, and data, making competition between systems inherent to deployment. In such settings, outcomes are shaped not only by benchmark quality but also by competitive pressure, including user switching, routing decisions, and operational constraints. Yet evaluation is still largely conducted on static benchmarks with accuracy-focused measures that assume systems operate in isolation. This mismatch makes it difficult to predict post-deployment success and obscures competitive effects such as early-adoption advantages and market dominance. We introduce Marketplace Evaluation, a simulation-based paradigm that evaluates information access systems as participants in a competitive marketplace. By simulating repeated interactions and evolving user and agent preferences, the framework enables longitudinal evaluation and marketplace-level metrics, such as retention and market share, that complement and can extend beyond traditional accuracy-based metrics. We formalize the framework and outline a research agenda, motivated by business and economics, around marketplace simulation, metrics, optimization, and adoption in evaluation campaigns like TREC.
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