We propose a market-based approach to workflow problems in which human and computer agents bid for tasks and resources in an open market or auction, and demonstrate its applicability to a small business loan application process. Workflow problems generally require the coordination of many workers, machines and computers.
Markets provide a natural mechanism for scheduling tasks and allocating resources.
Auctions optimize the allocation of tasks and resources and determine transfer prices. By properly structuring the auction, incentive compatibility can be assured, so that agents are rewarded for being productive and for giving truthful and accurate assessments of their utilities. The decentralized structure of a market also facilitates longer term learning by individual agents. Optimization theory and operations research provide some insight into the limitations of distributed systems such as markets and suggest cases where the decentralized market must be supplemented by a central controller which uses market intervention to assure stability and global optimality. In such complex undertakings, there are typically many data repositories and many decision makers, each of whom must communicate and coordinate decisions with a variety of human and computer agents.