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Related papers: A Unified Framework for Dynamic Pari-Mutuel Inform…

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Pari-mutuel markets are trading platforms through which the common market maker simultaneously clears multiple contingent claims markets. This market has several distinctive properties that began attracting the attention of the financial…

Trading and Market Microstructure · Quantitative Finance 2015-11-11 Hee Su Roh , Yinyu Ye

Building on ideas from online convex optimization, we propose a general framework for the design of efficient securities markets over very large outcome spaces. The challenge here is computational. In a complete market, in which one…

Computer Science and Game Theory · Computer Science 2010-11-10 Jacob Abernethy , Yiling Chen , Jennifer Wortman Vaughan

Decentralised automated market makers (AMMs) have gained significant attention recently. We propose an adaptive and automated Dynamic Function Market Maker (DFMM) that addresses challenges in this space. Our DFMM protocol includes a data…

General Finance · Quantitative Finance 2023-07-26 Arman Abgaryan , Utkarsh Sharma

Constant-function market makers (CFMMs), such as Uniswap, are automated exchanges offering trades among a set of assets. We study their technical relationship to another class of automated market makers, cost-function prediction markets. We…

Computer Science and Game Theory · Computer Science 2023-04-10 Rafael Frongillo , Maneesha Papireddygari , Bo Waggoner

Mechanisms such as auctions and pricing schemes are utilized to design strategic (noncooperative) games for networked systems. Although the participating players are selfish, these mechanisms ensure that the game outcome is optimal with…

Computer Science and Game Theory · Computer Science 2010-09-03 Tansu Alpcan , Holger Boche , Siddharth Naik

We study decentralized markets for goods whose utility perishes in time, with compute as a primary motivation. Recent advances in reproducible and verifiable execution allow jobs to pause, verify, and resume across heterogeneous hardware,…

Theoretical Economics · Economics 2025-11-21 Chengqi Zang , Gabriel P. Andrade , Oğuzhan Ersoy

We propose a new framework that unifies different fairness measures into a general, parameterized class of convex fairness measures suitable for optimization contexts. First, we propose a new class of order-based fairness measures, discuss…

Optimization and Control · Mathematics 2025-01-30 Man Yiu Tsang , Karmel S. Shehadeh

This paper introduces a systematic methodological framework to design and analyze distributed algorithms for optimization and games over networks. Starting from a centralized method, we identify an aggregation function involving all the…

Optimization and Control · Mathematics 2025-05-26 Guido Carnevale , Nicola Mimmo , Giuseppe Notarstefano

Market makers provide liquidity to other market participants: they propose prices at which they stand ready to buy and sell a wide variety of assets. They face a complex optimization problem with both static and dynamic components. They…

Trading and Market Microstructure · Quantitative Finance 2017-05-09 Olivier Guéant

Automated Market Makers (AMMs) are a central component of decentralized exchanges, yet their equilibrium foundations and microeconomic mechanisms remain incompletely understood. This paper develops a dynamic equilibrium framework for…

General Economics · Economics 2026-03-10 Chengqi Zang , Zhenghui Wang , Weitong Zhang

We propose a unified framework for fair regression tasks formulated as risk minimization problems subject to a demographic parity constraint. Unlike many existing approaches that are limited to specific loss functions or rely on challenging…

Methodology · Statistics 2026-01-16 Yongzhen Feng , Weiwei Wang , Raymond K. W. Wong , Xianyang Zhang

We introduce a modular framework for market making. It combines cost-function based automated market makers with bandit algorithms. We obtain worst-case profits guarantee's relative to the best in hindsight within a class of natural…

Trading and Market Microstructure · Quantitative Finance 2013-08-05 Nicolas Della Penna , Mark D. Reid

It is well-known that a market equilibrium with uniform prices often does not exist in non-convex day-ahead electricity auctions. We consider the case of the non-convex, uniform-price Pan-European day-ahead electricity market "PCR" (Price…

Optimization and Control · Mathematics 2015-02-02 Mehdi Madani , Mathieu Van Vyve

For revenue and welfare maximization in single-dimensional Bayesian settings, Chawla et al. (STOC10) recently showed that sequential posted-price mechanisms (SPMs), though simple in form, can perform surprisingly well compared to the…

Computer Science and Game Theory · Computer Science 2010-10-28 Qiqi Yan

Prediction markets are powerful mechanisms for information aggregation, but existing designs are optimized for single-event contracts. In practice, traders frequently express beliefs about joint outcomes - through parlays in sports,…

Computational Engineering, Finance, and Science · Computer Science 2026-05-21 Ranvir Rana , Viraj Nadkarni , Niusha Moshrefi , Pramod Viswanath

In the setting where information cannot be verified, we propose a simple yet powerful information theoretical framework---the Mutual Information Paradigm---for information elicitation mechanisms. Our framework pays every agent a measure of…

Computer Science and Game Theory · Computer Science 2018-01-19 Yuqing Kong , Grant Schoenebeck

The topics treated in this thesis are inherently two-fold. The first part considers the problem of a market maker optimally setting bid/ask quotes over a finite time horizon, to maximize her expected utility. The intensities of the orders…

Optimization and Control · Mathematics 2020-09-15 Diego Zabaljauregui

We introduce a new class of combinatorial markets in which agents have covering constraints over resources required and are interested in delay minimization. Our market model is applicable to several settings including scheduling, cloud…

Computer Science and Game Theory · Computer Science 2017-04-17 Nikhil Devanur , Jugal Garg , Ruta Mehta , Vijay V. Vazirani , Sadra Yazdanbod

Electricity market operators worldwide use mixed-integer linear programming to solve the allocation problem in wholesale electricity markets. Prices are typically determined based on the duals of relaxed versions of this optimization…

Computer Science and Game Theory · Computer Science 2023-12-13 Mete Şeref Ahunbay , Martin Bichler , Teodora Dobos , Johannes Knörr

This paper studies the risk-averse mean-variance optimization in infinite-horizon discounted Markov decision processes (MDPs). The involved variance metric concerns reward variability during the whole process, and future deviations are…

Optimization and Control · Mathematics 2022-01-19 Shuai Ma , Xiaoteng Ma , Li Xia
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