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This research introduces Bazaar, a dynamic benchmark evaluating how frontier LLMs perform pricing strategies in multi-attribute auctions under real-time market shocks. The study reveals significant gaps between customer acquisition capabilities and profit optimization across 11 models, indicating that current agents capture less than one-third of potential optimal profits despite rapid learning speeds. These findings highlight critical headroom for improving agentic commerce infrastructure before widespread deployment can be economically viable.
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Can LLM Agents Price Competitively? A Dynamic Multi-Attribute Auction Benchmark for Agentic Commerce

arXiv2 min read

arXiv:2608.00102v1 Announce Type: new Abstract: Agentic commerce is moving from concept to deployed infrastructure: payment networks, retailers, and AI platforms are setting the stage for agents to transact on behalf of merchants and consumers. Yet whether the LLMs behind these agents can price competently in real markets, where customer preferences are hidden, competitors adapt in real time, and demand can shift without warning, has not been systematically tested. We introduce Bazaar, a dynamic sealed-bid benchmark for multi-attribute auction under these conditions. Despite its dynamics, the benchmark is grounded in closed-form customer utilities, enabling exact evaluation. Across 11 frontier LLMs from four providers, the leading agents on customer acquisition (e.g. Gemini 3.1 Pro) are often not the leading agents on profit (e.g. Opus 4.6). The ranking shifts again under demand shocks: agents that learned fastest pre-shock are typically the slowest to revise their beliefs afterwards, while Gemini 3.1 Pro recovers fastest despite not leading on profit. However, even the strongest agent captures less than a third of hindsight-optimal profit, suggesting current LLMs are progressing in agentic commerce but leave substantial headroom.

Title:Can LLM Agents Price Competitively? A Dynamic Multi-Attribute Auction Benchmark for Agentic Commerce

Abstract:Agentic commerce is moving from concept to deployed infrastructure: payment networks, retailers, and AI platforms are setting the stage for agents to transact on behalf of merchants and consumers. Yet whether the LLMs behind these agents can price competently in real markets, where customer preferences are hidden, competitors adapt in real time, and demand can shift without warning, has not been systematically tested. We introduce Bazaar, a dynamic sealed-bid benchmark for multi-attribute auction under these conditions. Despite its dynamics, the benchmark is grounded in closed-form customer utilities, enabling exact evaluation. Across 11 frontier LLMs from four providers, the leading agents on customer acquisition (e.g. Gemini 3.1 Pro) are often not the leading agents on profit (e.g. Opus 4.6). The ranking shifts again under demand shocks: agents that learned fastest pre-shock are typically the slowest to revise their beliefs afterwards, while Gemini 3.1 Pro recovers fastest despite not leading on profit. However, even the strongest agent captures less than a third of hindsight-optimal profit, suggesting current LLMs are progressing in agentic commerce but leave substantial headroom.

Artificial Intelligence (cs.AI); Multiagent Systems (cs.MA)

arXiv:2608.00102 [cs.AI]

(or arXiv:2608.00102v1 [cs.AI] for this version)

https://doi.org/10.48550/arXiv.2608.00102 Focus to learn more arXiv-issued DOI via DataCite

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Full text under the publisher's open licence · 283 words

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