Abstract
In the paper we developed a multi-agent system, based on network flow model and KQML, called MASCAN-Multi-Agent System to support negotiation of Cost Allocation on Network. Such problem is very important to the utility industries, such as, electricity and gas, transportation and logistics industry. In our system, each agent represents a node in a network, it does not receive any centralized controls or centralized information sources. In which all the decisions were made locally based on the rules or knowledge that each agent has in order to contend with other agents for a possible cheapest path under a fair-play practice. We also assume that each agent is rational. The solution to the cost allocation is the equilibrium point of a non-cooperative game subject to the constraints of the given network. In this study we applied MASCAN to model and support the negotiation of cost allocation of power transmission after the deregulation of electricity industry.