{"id":1154326,"date":"2025-11-05T09:00:00","date_gmt":"2025-11-05T17:00:00","guid":{"rendered":"https:\/\/www.microsoft.com\/en-us\/research\/blog\/magentic-marketplace-an-open-source-simulation-environment-for-studying-agentic-markets\/"},"modified":"2025-11-26T14:36:49","modified_gmt":"2025-11-26T22:36:49","slug":"magentic-marketplace-an-open-source-simulation-environment-for-studying-agentic-markets","status":"publish","type":"post","link":"https:\/\/www.microsoft.com\/en-us\/research\/blog\/magentic-marketplace-an-open-source-simulation-environment-for-studying-agentic-markets\/","title":{"rendered":"Magentic Marketplace: an open-source simulation environment for studying agentic markets"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1400\" height=\"788\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1.jpg\" alt=\"Three white icons on a blue-to-purple gradient background: the first icon shows a node cluster, the second shows two persons, the third is a building, and the fourth is a location pin\" class=\"wp-image-1154335\" srcset=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1.jpg 1400w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-300x169.jpg 300w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-1024x576.jpg 1024w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-768x432.jpg 768w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-1066x600.jpg 1066w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-655x368.jpg 655w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-240x135.jpg 240w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-640x360.jpg 640w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-960x540.jpg 960w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-1280x720.jpg 1280w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\" \/><\/figure>\n\n\n\n<p>Autonomous AI agents are here, and they&#8217;re poised to reshape the economy. By automating discovery, negotiation, and transactions, agents can overcome inefficiencies like information asymmetries and platform lock-in, enabling faster, more transparent, and more competitive markets.<\/p>\n\n\n\n<p>We are already seeing early signs of this transformation in digital marketplaces. Customer-facing assistants like OpenAI\u2019s Operator and Anthropic\u2019s Computer Use can navigate websites and complete purchases. On the business side, Shopify Sidekick, Salesforce Einstein, and Meta\u2019s Business AI help merchants with operations and customer engagement. These examples hint at a future where agents become active market participants, but the structure of these markets remains uncertain.<\/p>\n\n\n\n<p>Several scenarios are possible. We might see one-sided markets where only customers or businesses deploy agents; closed platforms (known as <em>walled gardens<\/em>) where companies tightly control agent interactions; or even open two-sided marketplaces where customer and business agents transact freely across ecosystems. Each path carries different trade-offs for security, openness, convenience, and competition, which will shape how value flows in the digital economy. For a deeper exploration of these dynamics, see our paper, <a href=\"https:\/\/www.microsoft.com\/en-us\/research\/publication\/the-agentic-economy\/\">The Agentic Economy<\/a>.<\/p>\n\n\n\n<p>To help navigate this uncertainty, we built <a class=\"msr-external-link glyph-append glyph-append-open-in-new-tab glyph-append-xsmall\" href=\"https:\/\/github.com\/microsoft\/multi-agent-marketplace\" target=\"_blank\" rel=\"noopener noreferrer\">Magentic Marketplace<span class=\"sr-only\"> (opens in new tab)<\/span><\/a>\u2014 an open-source simulation environment for exploring the numerous possibilities of agentic markets and their societal implications at scale. It provides a foundation for studying these markets and guiding them toward outcomes that benefit everyone.<\/p>\n\n\n\n<p>This matters because most AI agent research focuses on isolated scenarios\u2014a single agent completing a task or two agents negotiating a simple transaction. But real markets involve a large number of agents simultaneously searching, communicating, and transacting, creating complex dynamics that can\u2019t be understood by studying agents in isolation. Capturing this complexity is essential because real-world deployments raise critical questions about consumer welfare, market efficiency, fairness, manipulation resistance, and bias\u2014questions that can\u2019t be safely answered in production environments.<\/p>\n\n\n\n<p>To explore these dynamics in depth, the Magentic Marketplace platform enables controlled experimentation across diverse agentic marketplace scenarios. Its current focus is on two-sided markets, but the environment is modular and extensible, supporting future exploration of mixed human\u2013agent systems, one-sided markets, and complex communication protocols.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"936\" height=\"393\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure1.png\" alt=\"Figure 1. Diagram illustrating the Magentic Marketplace Environment. On the left, two sections represent Customers and Businesses. Customers ask, \u201cCould you find me a restaurant serving agua fresca and empanadas with free parking?\u201d and are linked to Customer Agents (blue and purple icons). Businesses display a menu with items like steak tacos and empanadas, connected to Business Agents (purple icons). On the right, a three-step process is shown inside a pink box: Search \u2013 Customer agent searches for a restaurant among multiple business agents. Multi-Agent Communication \u2013 Customer agent asks about free parking and menu options, interacting with several business agents. Final Transaction \u2013 Customer agent places the order with a selected business agent.\" class=\"wp-image-1154337\" srcset=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure1.png 936w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure1-300x126.png 300w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure1-768x322.png 768w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure1-240x101.png 240w\" sizes=\"auto, (max-width: 936px) 100vw, 936px\" \/><figcaption class=\"wp-element-caption\">Figure 1. With Magentic Marketplace, researchers can model how agents representing customers and businesses interact\u2014shedding light on the dynamics that could shape future digital markets.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-magentic-marketplace\">What is Magentic Marketplace?<\/h2>\n\n\n\n<p>Magentic Marketplace\u2019s environment manages market-wide capabilities like maintaining catalogs of available goods and services, implementing discovery algorithms, facilitating agent-to-agent communication, and handling simulated payments through a centralized transaction layer at its core, which ensures transaction integrity across all marketplace interactions. Additionally, the platform enables systematic, reproducible research. As demonstrated in the following video, it supports a wide range of agent implementations and evolving marketplace features, allowing researchers to integrate diverse agent architectures and adapt the environment as new capabilities emerge.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-4-3 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Introducing Magentic Marketplace, an open-source simulation environment for studying agentic markets\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube-nocookie.com\/embed\/1SHpWinp7V8?feature=oembed&rel=0\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>We built Magentic Marketplace around three core architectural choices:<\/p>\n\n\n\n<p><strong>HTTP\/REST client-server architecture<\/strong>: Agents operate as independent clients while the Marketplace Environment serves as a central server. This mirrors real-world platforms and supports clear separation of customer and business agent roles.<\/p>\n\n\n\n<p><strong>Minimal&nbsp;three-endpoint&nbsp;market&nbsp;protocol<\/strong>:<strong>&nbsp;<\/strong>Just&nbsp;three endpoints\u2014register, protocol discovery, and action execution\u2014lets&nbsp;agents dynamically discover available actions.&nbsp;New capabilities&nbsp;can&nbsp;be added without disrupting existing experiments.<\/p>\n\n\n\n<p><strong>Rich action protocol<\/strong>: Specific message types support the complete transaction lifecycle: search, negotiation, proposals, and payments. The protocol is designed for extensibility. New actions like refunds, reviews, or ratings can be added seamlessly, allowing researchers to evolve marketplace capabilities and study emerging agent behaviors while remaining compatible.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"624\" height=\"178\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure2.png\" alt=\"Figure 2. Diagram of a Market Environment showing interactions between an Assistant Agent (representing user intention) and a Service Agent (representing point of sale). Both agents connect to the Market Environment via POST \/register, POST \/action, and GET \/protocol. Inside the Market Environment, components include Catalog, Search, Communication, and Transaction, with two Action Routers facilitating sending and receiving actions between the agents and the environment.\" class=\"wp-image-1154338\" srcset=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure2.png 624w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure2-300x86.png 300w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure2-240x68.png 240w\" sizes=\"auto, (max-width: 624px) 100vw, 624px\" \/><figcaption class=\"wp-element-caption\">Figure 2. Magentic Marketplace includes two agent types: Assistant Agents (customers) and Service Agents (businesses). Both interact with a central Market Environment via REST APIs for registration, service discovery, communication, and transaction execution. Action Routers manage message flow and protocol requests, enabling autonomous negotiation and commerce in a two-sided marketplace.<\/figcaption><\/figure>\n\n\n\n<p>Additionally, a visualization module lets users observe marketplace dynamics and review individual conversation threads between customer and business agents.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"setting-up-the-experiments\">Setting up the experiments<\/h2>\n\n\n\n<p>To ensure reproducibility, we instantiated the marketplace with fully synthetic data, <a class=\"msr-external-link glyph-append glyph-append-open-in-new-tab glyph-append-xsmall\" href=\"https:\/\/github.com\/microsoft\/multi-agent-marketplace\/tree\/main\/data\" target=\"_blank\" rel=\"noopener noreferrer\">available in our open-source repository<span class=\"sr-only\"> (opens in new tab)<\/span><\/a>. The experiments modeled transactions such as ordering food and engaging with home improvement services, where agents represented customers and businesses engaging in marketplace transactions. This setup enabled precise measurement of behavior and systematic comparison against theoretical upper bounds.<\/p>\n\n\n\n<p>Each experiment was run using 100 customers and 300 businesses and included both proprietary models (GPT-4o, GPT-4.1, GPT-5, and Gemini-2.5-Flash) and open-source models (OSS-20b, Qwen3-14b, and Qwen3-4b-Instruct-2507).<\/p>\n\n\n\n<p>Our scenarios focused on simple all-or-nothing requests: Each customer had a list of desired items and amenities that needed to be present for a transaction to be satisfying. For those transactions, utility was computed as the sum of the customer\u2019s internal item valuations minus actual prices paid. Consumer welfare, defined as the sum of utilities across all completed transactions, served as our key metric for comparing agent performance.<\/p>\n\n\n\n<p>While this experimental setup provides a useful starting point, it is not intended to be definitive. We encourage researchers to extend the framework with richer, more nuanced measures and request types that better capture real consumer welfare, fairness, and other societal considerations.<\/p>\n\n\n\n\t<div class=\"border-bottom border-top border-gray-300 mt-5 mb-5 msr-promo text-center text-md-left alignwide\" data-bi-aN=\"promo\" data-bi-id=\"1141385\">\n\t\t\n\n\t\n\t<div class=\"row pt-3 pb-4 align-items-center\">\n\t\t\t\t\t\t<div class=\"msr-promo__media col-12 col-md-5\">\n\t\t\t\t<a class=\"bg-gray-300 display-block\" href=\"https:\/\/ai.azure.com\/labs\" aria-label=\"Azure AI Foundry Labs\" data-bi-cN=\"Azure AI Foundry Labs\" target=\"_blank\">\n\t\t\t\t\t<img decoding=\"async\" class=\"w-100 display-block\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/06\/Azure-AI-Foundry_1600x900.jpg\" \/>\n\t\t\t\t<\/a>\n\t\t\t<\/div>\n\t\t\t\n\t\t\t<div class=\"msr-promo__content p-3 px-5 col-12 col-md\">\n\n\t\t\t\t\t\t\t\t\t<h2 class=\"h4\">Azure AI Foundry Labs<\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t<p id=\"azure-ai-foundry-labs\" class=\"large\">Get a glimpse of potential future directions for AI, with these experimental technologies from Microsoft Research.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t\t<div class=\"wp-block-buttons justify-content-center justify-content-md-start\">\n\t\t\t\t\t<div class=\"wp-block-button\">\n\t\t\t\t\t\t<a href=\"https:\/\/ai.azure.com\/labs\" aria-describedby=\"azure-ai-foundry-labs\" class=\"btn btn-brand glyph-append glyph-append-chevron-right\" data-bi-cN=\"Azure AI Foundry Labs\" target=\"_blank\">\n\t\t\t\t\t\t\tAzure AI Foundry\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div><!--\/.msr-promo__content-->\n\t<\/div><!--\/.msr-promo__inner-wrap-->\n\t<\/div><!--\/.msr-promo-->\n\t\n\n\n<h2 class=\"wp-block-heading\" id=\"what-did-we-find\">What did we find?<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"agents-can-improve-consumer-welfare-but-only-with-good-discovery\">Agents can improve consumer welfare\u2014but only with good discovery<\/h3>\n\n\n\n<p>We explored whether two-sided agentic markets\u2014where AI agents interact with each other and with service providers\u2014can improve consumer welfare by reducing information gaps. Unlike traditional markets, which do not provide agentic support and place the full burden of overcoming information asymmetries on customers, agentic markets shift much of that effort to agents. This change matters because as agents gain better tools for discovery and communication, they relieve customers of the heavy cognitive load of filling any information gaps. This lowers the cost of making informed decisions and improves customer outcomes.<\/p>\n\n\n\n<p>We compared several marketplace setups. Under realistic conditions (Agentic: Lexical search), agents faced real-world challenges like building queries, navigating paginated lists, identifying the right businesses to send inquiries to, and negotiating transactions.<\/p>\n\n\n\n<p>Despite these complexities, advanced proprietary models and some medium-sized open-source models like GPTOSS-20b outperformed simple baselines like <em>randomly choosing or simply choosing the cheapest option<\/em>. Notably, GPT-5 achieved near-optimal performance, demonstrating its ability to effectively gather and utilize decision-relevant information in realistic marketplace conditions.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"936\" height=\"447\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure3.png\" alt=\"Figure 3. Table comparing Baseline and Agentic conditions for marketplace decision-making. Columns include: Condition (e.g., Random w\/ items only, Cheapest w\/ items & prices, Random w\/ items & amenities, Optimal, Perfect search, Lexical search) Query (N\/A for most; \u201cAgent decides\u201d for Lexical search) Consideration Set (Businesses) (e.g., All w\/ matching menus; Paginated lists of 10 based on menu items) Businesses Contacted (All in consideration set or Agent decides) Information Used (Menu items, prices, amenities, or depends on agent-to-agent conversation) Decision Criteria (Random choice, Lowest price, or Agent decides).\" class=\"wp-image-1154339\" srcset=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure3.png 936w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure3-300x143.png 300w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure3-768x367.png 768w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure3-240x115.png 240w\" sizes=\"auto, (max-width: 936px) 100vw, 936px\" \/><figcaption class=\"wp-element-caption\">Figure 3. Table comparing experimental setups for welfare outcomes in the restaurant industry. Each row shows a different way agents or baselines make decisions, from random picks to fully coordinated agentic strategies. Cell colors indicate how much information is available: green, at the top left, represents complete information, red, at the top right, represents limited information, and yellow at the bottom represents decisions that depend on agent communication.<\/figcaption><\/figure>\n\n\n\n<p>Performance increased considerably under the <em>Agentic: Perfect search<\/em> condition, where agents started with the top three matches without needing to search and navigate among the choices. In this setting, Sonnet-4.0, Sonnet-4.5, GPT-5, and GPT-4.1 nearly reached the theoretical optimum and beat baselines with full amenity details but without agent-to-agent coordination.<\/p>\n\n\n\n<p>Open-source models were mixed: GPTOSS-20b performed strongly under both <em>Perfect search<\/em> and <em>Lexical search<\/em> conditions, even exceeding GPT-4o&#8217;s performance with Perfect search. This suggests that relatively compact models can exhibit robust information-gathering and decision-making capabilities in complex multi-agent environments. Qwen3-4b-2507 faltered when discovery involved irrelevant options (Lexical search), while Qwen3-14b lagged in both cases due to fundamental limitations in reasoning.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1430\" height=\"470\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-4.png\" alt=\"Figure 4. Boxplot comparing Agentic and Baseline strategies on welfare scores. The y-axis shows welfare (0\u20132000+), and the x-axis lists models and conditions. Under Agentic, models include Sonnet-4.0, Sonnet-4.5, GPT-5, GPT-4.1, Gemini-2.5-flash, GPT-4.0, GPT-oss-20b, Qwen3-4b-2507, and Qwen31-14b. Under Baselines, conditions include Random, Cheapest, and Random-items+amenities. Colors represent search types: blue = Lexical Search, yellow = Perfect Search, gray = Baseline, with a dashed line indicating Optimal welfare. Agentic models generally achieve higher welfare than baselines, with variability across models.\" class=\"wp-image-1154341\" srcset=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-4.png 1430w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-4-300x99.png 300w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-4-1024x337.png 1024w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-4-768x252.png 768w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-4-240x79.png 240w\" sizes=\"auto, (max-width: 1430px) 100vw, 1430px\" \/><figcaption class=\"wp-element-caption\">Figure 4. Chart showing consumer welfare outcomes in the restaurant industry under different marketplace setups. Blue bars show Agentic: Lexical search, where agents navigate realistic discovery challenges; yellow bars show Agentic: Perfect search, where agents started with ideal matches. Proprietary models approached optimum consumer welfare under perfect search, while open-source models and baselines lagged behind.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"paradox-of-choice\">Paradox of Choice<\/h2>\n\n\n\n<p>One promise of agents is their ability to consider far more options than people can. However, our experiments revealed a surprising limitation: providing agents with more options does not necessarily lead to more thorough exploration. We designed experiments that varied the search results limit from 3 to 100. Except for Gemini-2.5-Flash and GPT-5, the models contacted only a small fraction of available businesses regardless of the search limit. This suggests that most models do not conduct exhaustive comparisons and instead easily accept the initial &#8220;good enough&#8221; options.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1430\" height=\"660\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-5.png\" alt=\"Figure 5. Line chart showing the relationship between Search Limit (x-axis: 3 to 100) and Mean Messages per Customer (y-axis: 0 to 120) for five models: Claude Sonnet 4 (red triangles) \u2013 stays nearly flat around 10\u201315 messages. Gemini 2.5 Flash (purple diamonds) \u2013 rises sharply from ~5 to over 110 messages as search limit increases. GPT-4.1 (orange circles) and GPT-4o (green squares) \u2013 remain low and stable around 5\u201310 messages. GPT-5 (blue line) \u2013 increases moderately to ~40 messages, then plateaus.\" class=\"wp-image-1154342\" srcset=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-5.png 1430w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-5-300x138.png 300w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-5-1024x473.png 1024w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-5-768x354.png 768w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-5-240x111.png 240w\" sizes=\"auto, (max-width: 1430px) 100vw, 1430px\" \/><figcaption class=\"wp-element-caption\">Figure 5. More options didn\u2019t lead to broader exploration. Most models still contacted only a few businesses, except Gemini-2.5-Flash and GPT-5.<\/figcaption><\/figure>\n\n\n\n<p>Additionally, across all models, consumer welfare declined as the number of search results increased. Despite contacting over a hundred businesses, Gemini-2.5-Flash&#8217;s performance declined from 1,700 to 1,350, and GPT-5 declined even more, from a near-optimal 2,000 to 1,400.<\/p>\n\n\n\n<p>This demonstrates a Paradox of Choice effect, where more exploration does not guarantee better outcomes, potentially due to limited long context understanding. Claude Sonnet 4 showed the steepest performance decline, from 1,800 to 600 in consumer welfare. With all the options presented, it struggled to navigate larger sets of options and frequently contacted businesses that did not provide the goods or services that the customer was looking for.<\/p>\n\n\n\n<p>This combination of poor initial selection and premature search termination demonstrates both inadequate decision-making criteria and insufficient exploration strategies. Some models showed modest performance decline (i.e., GPT-4.1: from 1,850 to 1,700; GPT-4o: from 1,550 to 1,450), finding good options within their limited exploration.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1430\" height=\"653\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-6.png\" alt=\"Figure 6. Line chart showing Mean Customer Welfare (y-axis: 0\u20132200) versus Search Limit (x-axis: 3 to 100) for five models: Claude Sonnet 4 (red triangles) \u2013 starts near 1800 and declines sharply to ~600 as search limit increases. Gemini 2.5 Flash (purple diamonds) \u2013 decreases gradually from ~1700 to ~1300. GPT-4.1 (orange circles) \u2013 remains highest and most stable, around 1900\u20131700. GPT-4o (green squares) \u2013 stays near 1500 with slight decline. GPT-5 (blue line) \u2013 starts near 2000 and drops to ~1100. Dashed line at the top represents Optimal welfare (~2200).\" class=\"wp-image-1154340\" srcset=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-6.png 1430w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-6-300x137.png 300w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-6-1024x468.png 1024w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-6-768x351.png 768w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-6-240x110.png 240w\" sizes=\"auto, (max-width: 1430px) 100vw, 1430px\" \/><figcaption class=\"wp-element-caption\">Figure 6. Mean consumer welfare decreased as consideration set size grew, revealing a Paradox of Choice effect, where expanding options reduced overall welfare.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"agents-are-vulnerable-to-manipulation\">Agents are vulnerable to manipulation<\/h2>\n\n\n\n<p>We tested six manipulation strategies, ranging from subtle psychological tactics to aggressive prompt injection attacks:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Authority<\/strong>: Fake credentials like \u201cMichelin Guide featured\u201d and \u201cJames Beard Award nominated\u201d paired with fabricated certifications.<\/li>\n\n\n\n<li><strong>Social proof<\/strong>: Claims like \u201cJoin 50,000+ satisfied customers\u201d or \u201c#1-rated Mexican restaurant\u201d combined with fake reviews.<\/li>\n\n\n\n<li><strong>Loss aversion<\/strong>: Fear-based warnings about \u201cfood poisoning\u201d risks and \u201ccontamination issues\u201d at competing restaurants.<\/li>\n\n\n\n<li><strong>Prompt injection (basic)<\/strong>: Attempts to override agent instructions.<\/li>\n\n\n\n<li><strong>Prompt injection (strong)<\/strong>: Aggressive attacks using emergency language and fabricating competitor scandals.<\/li>\n<\/ul>\n\n\n\n<p>Results revealed significant variation in manipulation resistance across models. Sonnet-4 was resistant to all attacks, and none of the manipulative strategies affected any of the customers\u2019 choices. Gemini-2.5-Flash was generally resistant, except for strong prompt injections, where mean payments to unmanipulated agents were affected as a result. GPT-4o, GPTOSS-20b and Qwen3-4b were very vulnerable to prompt injection: all payments were redirected to the manipulative agent under these conditions. Specifically for GPTOSS-20 and Qwen3-4b-2507, even traditional psychological manipulation tactics (authority appeals and social proof) increased payments to malicious agents, demonstrating their vulnerability to basic persuasion techniques. These findings highlight a critical security concern for agentic marketplaces.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1430\" height=\"270\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-7.png\" alt=\"Figure 7. Horizontal bar chart comparing mean payments received under different manipulation strategies for six models: Claude Sonnet 4.5, Gemini 2.5 Flash, GPT-4o, GPT OSS 20B, Qwen3 14B, and Qwen3 4B. Each model has bars for six conditions: Control, Authority, Social Proof, Loss Aversion, Prompt Injection (Basic), and Prompt Injection (Strong). Bars are split into red for manipulated and gray for rest, with values ranging from near 0 to 3. Claude Sonnet 4.5 shows consistently high payments (~3) across all conditions, while Gemini and GPT models vary, and Qwen models show very low manipulated values (~0.2) compared to rest.\" class=\"wp-image-1154344\" srcset=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-7.png 1430w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-7-300x57.png 300w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-7-1024x193.png 1024w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-7-768x145.png 768w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-7-240x45.png 240w\" sizes=\"auto, (max-width: 1430px) 100vw, 1430px\" \/><figcaption class=\"wp-element-caption\">Figure 7. Charts showing the variation in mean payments received by service agents with and without manipulation tactics. The results reveal substantial differences in manipulation resistance across models, with GPT-4.1 showing significantly higher vulnerability compared to Gemini-2.5-Flash.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"systemic-biases-create-unfair-advantages\">Systemic biases create unfair advantages<\/h2>\n\n\n\n<p>Our analysis revealed two distinct types of systematic biases showed by agents when selecting businesses from search results. Models showed systematic preferences based on where businesses appeared in search results. While proprietary models showed no strong positional preferences, open-source models exhibited clear patterns. Specifically, Qwen2.5-14b-2507 showed a pronounced bias toward selecting the last business presented, regardless of its actual merits.<\/p>\n\n\n\n<p>Proposal&nbsp;bias&nbsp;is&nbsp;more pervasive across all models tested. This &#8220;first-offer acceptance&#8221; pattern suggests that models prioritized&nbsp;immediate selection over comprehensive exploration, potentially missing better alternatives that&nbsp;could have&nbsp;emerged&nbsp;by waiting for better options. This behavior&nbsp;continued&nbsp;across both proprietary and open-source models,&nbsp;indicating&nbsp;a fundamental challenge in agent decision-making architectures.<\/p>\n\n\n\n<p>These biases can create unfair market dynamics, drive unintended behaviors, and push businesses to complete on response speed rather than product or service quality.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1430\" height=\"289\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-8.png\" alt=\"Figure 8. Bar chart showing average selection rate for first, second, and third choices across six models: Claude Sonnet 4.5, Gemini 2.5 Flash, GPT-4o, GPT OSS 20B, Qwen3 14B, and Qwen3 4B. Each model has three bars labeled 1st, 2nd, and 3rd. Most models strongly favor the first choice: Claude Sonnet 4.5: 93.3% for 1st, 0% for 2nd, 6.7% for 3rd. Gemini 2.5 Flash: 86.7% for 1st, 6.7% for 2nd and 3rd. GPT-4o: 100% for 1st, 0% for others. GPT OSS 20B: 80% for 1st, 13.3% for 2nd, 6.7% for 3rd. Qwen3 14B: 0% for all. Qwen3 4B: 100% for 1st, 0% for others. Dashed line indicates random selection baseline.\" class=\"wp-image-1154343\" srcset=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-8.png 1430w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-8-300x61.png 300w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-8-1024x207.png 1024w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-8-768x155.png 768w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/Magentic-Marketplace_Figure-8-240x49.png 240w\" sizes=\"auto, (max-width: 1430px) 100vw, 1430px\" \/><figcaption class=\"wp-element-caption\">Figure 8. All models showed strong preference for the first proposal received, accepting it without waiting for additional proposals or conducting systematic comparisons.<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-this-means\">What this means<\/h2>\n\n\n\n<p>Even state-of-the-art models can show notable vulnerabilities and biases in marketplace environments. In our implementation, agents struggled with too many options, were susceptible to manipulation tactics, and showed systemic biases that created unfair advantages.<\/p>\n\n\n\n<p>These outcomes are shaped not only by agent capabilities but also by marketplace design and implementation. Our current study focused on static markets, but real-world environments are dynamic, with agents and users learning over time. Oversight is critical for high-stakes transactions. Agents should assist, not replace, human decision-making.<\/p>\n\n\n\n<p>We plan to explore dynamic markets and human-in-the-loop designs to improve efficiency and trust. A simulation environment like Magentic Marketplace is crucial for understanding the interplay between market components and agents before deploying them at scale.<\/p>\n\n\n\n<p>Full details of our experimental setup and results are available in our <a class=\"msr-external-link glyph-append glyph-append-open-in-new-tab glyph-append-xsmall\" href=\"https:\/\/arxiv.org\/abs\/2510.25779\" target=\"_blank\" rel=\"noopener noreferrer\">paper<span class=\"sr-only\"> (opens in new tab)<\/span><\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"getting-started\">Getting started<\/h2>\n\n\n\n<p>Magentic Marketplace is available as an open-source environment for exploring agentic market dynamics. Code, datasets, and experiment templates are available on <a class=\"msr-external-link glyph-append glyph-append-open-in-new-tab glyph-append-xsmall\" href=\"https:\/\/github.com\/microsoft\/multi-agent-marketplace\/\" target=\"_blank\" rel=\"noopener noreferrer\">GitHub<span class=\"sr-only\"> (opens in new tab)<\/span><\/a> and <a class=\"msr-external-link glyph-append glyph-append-open-in-new-tab glyph-append-xsmall\" rel=\"noopener noreferrer\" target=\"_blank\" href=\"https:\/\/labs.ai.azure.com\/projects\/magentic-marketplace\">Azure AI Foundry Labs<span class=\"sr-only\"> (opens in new tab)<\/span><\/a>.<\/p>\n\n\n\n<p>The <a class=\"msr-external-link glyph-append glyph-append-open-in-new-tab glyph-append-xsmall\" href=\"https:\/\/microsoft.github.io\/multi-agent-marketplace\/\" target=\"_blank\" rel=\"noopener noreferrer\">documentation<span class=\"sr-only\"> (opens in new tab)<\/span><\/a> provides instructions for reproducing the experiments described above and guidance for extending the environment to new marketplace configurations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>AI agents are poised to transform digital marketplaces. To explore what can happen when AI agents interact and transact at scale, we built Magentic Marketplace, an open-source simulation environment for studying agentic market designs.<\/p>\n","protected":false},"author":43868,"featured_media":1154335,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"msr-url-field":"","msr-podcast-episode":"","msrModifiedDate":"","msrModifiedDateEnabled":false,"ep_exclude_from_search":false,"_classifai_error":"","msr-author-ordering":[{"type":"user_nicename","value":"Gagan Bansal","user_id":"41707"},{"type":"user_nicename","value":"Wenyue Hua","user_id":"44010"},{"type":"user_nicename","value":"Zachary Huang","user_id":"44011"},{"type":"user_nicename","value":"Adam Fourney","user_id":"30820"},{"type":"user_nicename","value":"Amanda Swearngin","user_id":"44002"},{"type":"user_nicename","value":"Chinmay Singh","user_id":"36750"},{"type":"user_nicename","value":"Brendan Lucier","user_id":"31303"},{"type":"user_nicename","value":"Jake Hofman","user_id":"32340"},{"type":"user_nicename","value":"Markus Mobius","user_id":"32980"},{"type":"user_nicename","value":"Will Epperson","user_id":"44012"},{"type":"user_nicename","value":"Tyler Payne","user_id":"43967"},{"type":"user_nicename","value":"Akshay Nambi","user_id":"38169"},{"type":"user_nicename","value":"Archana Yadav","user_id":"44016"},{"type":"user_nicename","value":"Maya Murad","user_id":"43879"},{"type":"user_nicename","value":"Matthew Vogel","user_id":"43560"},{"type":"user_nicename","value":"Alex Slivkins","user_id":"33685"},{"type":"user_nicename","value":"Dan Goldstein","user_id":"31618"},{"type":"user_nicename","value":"David Rothschild","user_id":"31566"},{"type":"user_nicename","value":"Hussein Mozannar","user_id":"43671"},{"type":"user_nicename","value":"Nicole Immorlica","user_id":"33086"},{"type":"user_nicename","value":"Subbarao Kambhampati","user_id":"44014"},{"type":"user_nicename","value":"Eric Horvitz","user_id":"32033"},{"type":"user_nicename","value":"Saleema Amershi","user_id":"33505"}],"msr_hide_image_in_river":null,"footnotes":""},"categories":[1],"tags":[],"research-area":[13556],"msr-region":[],"msr-event-type":[],"msr-locale":[268875],"msr-post-option":[269148,243984,269142,269145],"msr-impact-theme":[],"msr-promo-type":[],"msr-podcast-series":[],"class_list":["post-1154326","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-research-blog","msr-research-area-artificial-intelligence","msr-locale-en_us","msr-post-option-approved-for-river","msr-post-option-blog-homepage-featured","msr-post-option-include-in-river","msr-post-option-pinned-for-river"],"msr_event_details":{"start":"","end":"","location":""},"podcast_url":"","podcast_episode":"","msr_research_lab":[992148],"msr_impact_theme":[],"related-publications":[],"related-downloads":[],"related-videos":[],"related-academic-programs":[],"related-groups":[],"related-projects":[],"related-events":[],"related-researchers":[{"type":"user_nicename","value":"Gagan Bansal","user_id":41707,"display_name":"Gagan Bansal","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/gaganbansal\/\" aria-label=\"Visit the profile page for Gagan Bansal\">Gagan Bansal<\/a>","is_active":false,"last_first":"Bansal, Gagan","people_section":0,"alias":"gaganbansal"},{"type":"user_nicename","value":"Wenyue Hua","user_id":44010,"display_name":"Wenyue Hua","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/wenyuehua\/\" aria-label=\"Visit the profile page for Wenyue Hua\">Wenyue Hua<\/a>","is_active":false,"last_first":"Hua, Wenyue","people_section":0,"alias":"wenyuehua"},{"type":"user_nicename","value":"Zachary Huang","user_id":44011,"display_name":"Zachary Huang","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/zacharyhuang\/\" aria-label=\"Visit the profile page for Zachary Huang\">Zachary Huang<\/a>","is_active":false,"last_first":"Huang, Zachary","people_section":0,"alias":"zacharyhuang"},{"type":"user_nicename","value":"Adam Fourney","user_id":30820,"display_name":"Adam Fourney","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/adamfo\/\" aria-label=\"Visit the profile page for Adam Fourney\">Adam Fourney<\/a>","is_active":false,"last_first":"Fourney, Adam","people_section":0,"alias":"adamfo"},{"type":"user_nicename","value":"Amanda Swearngin","user_id":44002,"display_name":"Amanda Swearngin","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/aswearngin\/\" aria-label=\"Visit the profile page for Amanda Swearngin\">Amanda Swearngin<\/a>","is_active":false,"last_first":"Swearngin, Amanda","people_section":0,"alias":"aswearngin"},{"type":"user_nicename","value":"Chinmay Singh","user_id":36750,"display_name":"Chinmay Singh","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/chsingh\/\" aria-label=\"Visit the profile page for Chinmay Singh\">Chinmay Singh<\/a>","is_active":false,"last_first":"Singh, Chinmay","people_section":0,"alias":"chsingh"},{"type":"user_nicename","value":"Brendan Lucier","user_id":31303,"display_name":"Brendan Lucier","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/brlucier\/\" aria-label=\"Visit the profile page for Brendan Lucier\">Brendan Lucier<\/a>","is_active":false,"last_first":"Lucier, Brendan","people_section":0,"alias":"brlucier"},{"type":"user_nicename","value":"Jake Hofman","user_id":32340,"display_name":"Jake Hofman","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/jmh\/\" aria-label=\"Visit the profile page for Jake Hofman\">Jake Hofman<\/a>","is_active":false,"last_first":"Hofman, Jake","people_section":0,"alias":"jmh"},{"type":"user_nicename","value":"Markus Mobius","user_id":32980,"display_name":"Markus Mobius","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/mobius\/\" aria-label=\"Visit the profile page for Markus Mobius\">Markus Mobius<\/a>","is_active":false,"last_first":"Mobius, Markus","people_section":0,"alias":"mobius"},{"type":"user_nicename","value":"Will Epperson","user_id":44012,"display_name":"Will Epperson","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/willepperson\/\" aria-label=\"Visit the profile page for Will Epperson\">Will Epperson<\/a>","is_active":false,"last_first":"Epperson, Will","people_section":0,"alias":"willepperson"},{"type":"user_nicename","value":"Tyler Payne","user_id":43967,"display_name":"Tyler Payne","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/tylerpayne\/\" aria-label=\"Visit the profile page for Tyler Payne\">Tyler Payne<\/a>","is_active":false,"last_first":"Payne, Tyler","people_section":0,"alias":"tylerpayne"},{"type":"user_nicename","value":"Akshay Nambi","user_id":38169,"display_name":"Akshay Nambi","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/akshayn\/\" aria-label=\"Visit the profile page for Akshay Nambi\">Akshay Nambi<\/a>","is_active":false,"last_first":"Nambi, Akshay","people_section":0,"alias":"akshayn"},{"type":"user_nicename","value":"Archana Yadav","user_id":44016,"display_name":"Archana Yadav","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/t-aryadav\/\" aria-label=\"Visit the profile page for Archana Yadav\">Archana Yadav<\/a>","is_active":false,"last_first":"Yadav, Archana","people_section":0,"alias":"t-aryadav"},{"type":"user_nicename","value":"Maya Murad","user_id":43879,"display_name":"Maya Murad","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/mayamurad\/\" aria-label=\"Visit the profile page for Maya Murad\">Maya Murad<\/a>","is_active":false,"last_first":"Murad, Maya","people_section":0,"alias":"mayamurad"},{"type":"user_nicename","value":"Matthew Vogel","user_id":43560,"display_name":"Matthew Vogel","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/mavoge\/\" aria-label=\"Visit the profile page for Matthew Vogel\">Matthew Vogel<\/a>","is_active":false,"last_first":"Vogel, Matthew","people_section":0,"alias":"mavoge"},{"type":"user_nicename","value":"Alex Slivkins","user_id":33685,"display_name":"Alex Slivkins","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/slivkins\/\" aria-label=\"Visit the profile page for Alex Slivkins\">Alex Slivkins<\/a>","is_active":false,"last_first":"Slivkins, Alex","people_section":0,"alias":"slivkins"},{"type":"user_nicename","value":"Dan Goldstein","user_id":31618,"display_name":"Dan Goldstein","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/dgg\/\" aria-label=\"Visit the profile page for Dan Goldstein\">Dan Goldstein<\/a>","is_active":false,"last_first":"Goldstein, Dan","people_section":0,"alias":"dgg"},{"type":"user_nicename","value":"David Rothschild","user_id":31566,"display_name":"David Rothschild","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/davidmr\/\" aria-label=\"Visit the profile page for David Rothschild\">David Rothschild<\/a>","is_active":false,"last_first":"Rothschild, David","people_section":0,"alias":"davidmr"},{"type":"user_nicename","value":"Hussein Mozannar","user_id":43671,"display_name":"Hussein Mozannar","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/hmozannar\/\" aria-label=\"Visit the profile page for Hussein Mozannar\">Hussein Mozannar<\/a>","is_active":false,"last_first":"Mozannar, Hussein","people_section":0,"alias":"hmozannar"},{"type":"user_nicename","value":"Nicole Immorlica","user_id":33086,"display_name":"Nicole Immorlica","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/nicimm\/\" aria-label=\"Visit the profile page for Nicole Immorlica\">Nicole Immorlica<\/a>","is_active":false,"last_first":"Immorlica, Nicole","people_section":0,"alias":"nicimm"},{"type":"user_nicename","value":"Eric Horvitz","user_id":32033,"display_name":"Eric Horvitz","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/horvitz\/\" aria-label=\"Visit the profile page for Eric Horvitz\">Eric Horvitz<\/a>","is_active":false,"last_first":"Horvitz, Eric","people_section":0,"alias":"horvitz"},{"type":"user_nicename","value":"Saleema Amershi","user_id":33505,"display_name":"Saleema Amershi","author_link":"<a href=\"https:\/\/www.microsoft.com\/en-us\/research\/people\/samershi\/\" aria-label=\"Visit the profile page for Saleema Amershi\">Saleema Amershi<\/a>","is_active":false,"last_first":"Amershi, Saleema","people_section":0,"alias":"samershi"}],"msr_type":"Post","featured_image_thumbnail":"<img width=\"960\" height=\"540\" src=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-960x540.jpg\" class=\"img-object-cover\" alt=\"Four white icons on a blue-to-purple gradient background: the first icon shows a node cluster, the second shows two persons, the third is a building, and the fourth is a location pin\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-960x540.jpg 960w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-300x169.jpg 300w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-1024x576.jpg 1024w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-768x432.jpg 768w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-1066x600.jpg 1066w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-655x368.jpg 655w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-240x135.jpg 240w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-640x360.jpg 640w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1-1280x720.jpg 1280w, https:\/\/www.microsoft.com\/en-us\/research\/wp-content\/uploads\/2025\/10\/MagenticMarketplace-BlogHeroFeature-1400x788-1.jpg 1400w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/>","byline":"","formattedDate":"November 5, 2025","formattedExcerpt":"AI agents are poised to transform digital marketplaces. To explore what can happen when AI agents interact and transact at scale, we built Magentic Marketplace, an open-source simulation environment for studying agentic market designs.","locale":{"slug":"en_us","name":"English","native":"","english":"English"},"_links":{"self":[{"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/posts\/1154326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/users\/43868"}],"replies":[{"embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/comments?post=1154326"}],"version-history":[{"count":23,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/posts\/1154326\/revisions"}],"predecessor-version":[{"id":1155302,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/posts\/1154326\/revisions\/1155302"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/media\/1154335"}],"wp:attachment":[{"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/media?parent=1154326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/categories?post=1154326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/tags?post=1154326"},{"taxonomy":"msr-research-area","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/research-area?post=1154326"},{"taxonomy":"msr-region","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-region?post=1154326"},{"taxonomy":"msr-event-type","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-event-type?post=1154326"},{"taxonomy":"msr-locale","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-locale?post=1154326"},{"taxonomy":"msr-post-option","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-post-option?post=1154326"},{"taxonomy":"msr-impact-theme","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-impact-theme?post=1154326"},{"taxonomy":"msr-promo-type","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-promo-type?post=1154326"},{"taxonomy":"msr-podcast-series","embeddable":true,"href":"https:\/\/www.microsoft.com\/en-us\/research\/wp-json\/wp\/v2\/msr-podcast-series?post=1154326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}