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We consider a model where an agent has a repeated decision to make and wishes to maximize their total payoff. Payoffs are influenced by an action taken by the agent, but also an unknown state of the world that evolves over time. Before…

Computer Science and Game Theory · Computer Science 2021-01-20 Nicole Immorlica , Ian Kash , Brendan Lucier

Optimal execution of a portfolio have been a challenging problem for institutional investors. Traders face the trade-off between average trading price and uncertainty, and traditional methods suffer from the curse of dimensionality. Here,…

Portfolio Management · Quantitative Finance 2023-06-16 Xiaoyue Li , John M. Mulvey

This paper uses the development of multi-agent market models to present a unified approach to the joint questions of how financial market movements may be simulated, predicted, and hedged against. We examine the effect of different market…

Condensed Matter · Physics 2009-10-31 P. Jefferies , M. L. Hart , P. M. Hui , N. F. Johnson

We consider the dynamics of player's strategies in repeated market games, where the selection of strategies is determined by a learning model. Prior theoretical analysis and experimental data show that after large number of plays the…

Analysis of PDEs · Mathematics 2015-09-21 Misha Perepelitsa

We applied Deep Q-Network with a Convolutional Neural Network function approximator, which takes stock chart images as input, for making global stock market predictions. Our model not only yields profit in the stock market of the country…

General Finance · Quantitative Finance 2019-11-27 Jinho Lee , Raehyun Kim , Yookyung Koh , Jaewoo Kang

Standard models in economics stress the role of intelligent agents who maximize utility. However, there may be situations where, for some purposes, constraints imposed by market institutions dominate intelligent agent behavior. We use data…

Statistical Mechanics · Physics 2008-12-02 J. Doyne Farmer , Paolo Patelli , Ilija I. Zovko

Ambient Intelligence aims to offer personalized services and easier ways of interaction between people and systems. Since several users and systems may coexist in these environments, it is quite possible that entities with opposing…

Multiagent Systems · Computer Science 2016-04-19 Victor Sanchez-Anguix , Soledad Valero , Vicente Julian , Vicente Botti , Ana Garcia-Fornes

In this paper, we introduce a large system of interacting financial agents in which each agent is faced with the decision of how to allocate his capital between a risky stock or a risk-less bond. The investment decision of investors,…

Portfolio Management · Quantitative Finance 2019-02-21 Torsten Trimborn , Lorenzo Pareschi , Martin Frank

The rapid growth of crypto markets has opened new opportunities for investors, but at the same time exposed them to high volatility. To address the challenge of managing dynamic portfolios in such an environment, this paper presents a…

Portfolio Management · Quantitative Finance 2025-07-29 Antonino Castelli , Paolo Giudici , Alessandro Piergallini

A population of heterogenous agents compeeting through a minority rule is investigated. Agents which frequently loose are selected for evolution by changing their strategies. The stationary composition of the population resulting for this…

Disordered Systems and Neural Networks · Physics 2009-10-31 Alexei Vazquez

We study an economic model where agents trade a variety of products by using one of three competing rules: "need", "greed" and "noise". We find that the optimal strategy for any agent depends on both product composition in the overall…

Other Condensed Matter · Physics 2009-11-10 R. Donangelo , A. Hansen , K. Sneppen , S. R. Souza

In electronic trading markets often only the price or volume time series, that result from interaction of multiple market participants, are directly observable. In order to test trading strategies before deploying them to real-time trading,…

Machine Learning · Computer Science 2021-08-03 Victor Storchan , Svitlana Vyetrenko , Tucker Balch

In this paper, our objective is to develop a multi-agent financial system that incorporates simulated trading, a technique extensively utilized by financial professionals. While current LLM-based agent models demonstrate competitive…

Artificial Intelligence · Computer Science 2025-10-07 Xiangyu Li , Yawen Zeng , Xiaofen Xing , Jin Xu , Xiangmin Xu

Many studies have shown that there are regularities in the way human beings make decisions. However, our ability to obtain models that capture such regularities and can accurately predict unobserved decisions is still limited. We tackle…

General Finance · Quantitative Finance 2021-03-11 Gael Poux-Medard , Sergio Cobo-Lopez , Jordi Duch , Roger Guimera , Marta Sales-Pardo

A group of players which contain n sellers and n buyers bargain over the partitions of n pies. A seller(/buyer) has to reach an agreement with a buyer (/seller) on the division of a pie. The players bargain in a system like the stock…

Computer Science and Game Theory · Computer Science 2016-10-10 Jiawei Li

Online auction scenarios, such as bidding searches on advertising platforms, often require bidders to participate repeatedly in auctions for identical or similar items. Most previous studies have only considered the process by which the…

Computer Science and Game Theory · Computer Science 2024-02-28 Yudong Hu , Congying Han , Tiande Guo , Hao Xiao

We report on a technique based on multi-agent games which has potential use in the prediction of future movements of financial time-series. A third-party game is trained on a black-box time-series, and is then run into the future to extract…

Disordered Systems and Neural Networks · Physics 2009-11-07 N. F. Johnson , D. Lamper , P. Jefferies , M. L. Hart , S. Howison

The price fluctuations in the financial markets are the result of the individual operations by many individual investors. However for many decades the finacial theory did not use directly this "microscopic representation". The difficulties…

adap-org · Physics 2009-10-31 Sorin Solomon

In network formation games, agents form edges with each other to maximize their utility. Each agent's utility depends on its private beliefs and its edges in the network. Strategic agents can misrepresent their beliefs to get a better…

Optimization and Control · Mathematics 2024-09-04 Akhil Jalan , Deepayan Chakrabarti

Evolutions of the trading landscape lead to the capability to exchange the same financial instrument on different venues. Because of liquidity issues, the trading firms split large orders across several trading destinations to optimize…

Trading and Market Microstructure · Quantitative Finance 2010-07-28 Sophie Laruelle , Charles-Albert Lehalle , Gilles Pagès
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