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We study principal-agent problems in which a principal commits to an outcome-dependent payment scheme (a.k.a. contract) so as to induce an agent to take a costly, unobservable action. We relax the assumption that the principal perfectly…

Computer Science and Game Theory · Computer Science 2021-06-02 Matteo Castiglioni , Alberto Marchesi , Nicola Gatti

We study the interaction between strategy, heterogeneity and growth in a two-agent model of capital accumulation. Preferences are represented by recursive utility functions with decreasing marginal impatience. The stationary equilibria of…

Optimization and Control · Mathematics 2016-08-26 Luis Alcala , Fernando Tohme , Carlos Dabus

We study a problem of optimal allocation in a discrete-time multi-period pure-exchange economy, where agents have preferences over stochastic endowment processes that are represented by strongly time-consistent dynamic risk measures. We…

Risk Management · Quantitative Finance 2026-03-23 Brandon Tam , Mario Ghossoub , Silvana M. Pesenti

We address two mathematical aspects of the Bir\'o--N\'eda dynamical model, recently applied in the statistical analysis of several and varied complex phenomena. First, we show that a given implicit assumption ceases to be valid outside the…

Mathematical Physics · Physics 2023-11-23 Ilda Inácio , José Velhinho

User preference learning is generally a hard problem. Individual preferences are typically unknown even to users themselves, while the space of choices is infinite. Here we study user preference learning from information-theoretic…

Machine Learning · Computer Science 2023-11-27 Tanya Ignatenko , Kirill Kondrashov , Marco Cox , Bert de Vries

This paper focuses on a new model to reach the existence of equilibrium in a pure exchange economy with fuzzy preferences (PXE-FP). The proposed model integrates exchange, consumption and the agent's fuzzy preference in the consumption set.…

Computer Science and Game Theory · Computer Science 2020-10-13 Xia Zhang , Hao Sun , Xuanzhu Jin , Moses Olabhele Esangbedo

Most of parameters used to describe states and dynamics of financial market depend on proportions of the appropriate variables rather than on their actual values. Therefore, projective geometry seems to be the correct language to describe…

Physics and Society · Physics 2009-11-13 Edward W. Piotrowski , Jan Sladkowski

In this paper, a general model of a pure exchange differential information economy is studied. In this economic model, the space of states of nature is a complete probability measure space, the space of agents is a measure space with a…

Functional Analysis · Mathematics 2012-11-02 Anuj Bhowmik , Jiling Cao , Nicholas C. Yannelis

This paper proposes a new way to model behavioral agents in dynamic macro-financial environments. Agents are described as neural networks and learn policies from idiosyncratic past experiences. I investigate the feedback between…

General Economics · Economics 2021-10-25 Artem Kuriksha

A model for decision making that generalizes Expected Utility Maximization is presented. This model, Expected Qualitative Utility Maximization, encompasses the Maximin criterion. It relaxes both the Independence and the Continuity…

Computer Science and Game Theory · Computer Science 2007-05-23 Daniel Lehmann

We present a unified logical framework for representing and reasoning about both probability quantitative and qualitative preferences in probability answer set programming, called probability answer set optimization programs. The proposed…

Artificial Intelligence · Computer Science 2013-04-12 Emad Saad

This paper studies robust forward investment and consumption preferences and optimal strategies for a risk-averse and ambiguity-averse agent in an incomplete financial market with drift and volatility uncertainties. We focus on non-zero…

Portfolio Management · Quantitative Finance 2025-09-17 Wing Fung Chong , Gechun Liang

Possibilistic risk theory starts from the hypothesis that risk is modelled by fuzzy numbers. In particular, in a possibilistic portfolio choice problem, the return of a risky asset will be a fuzzy number. The expected utility operators have…

Portfolio Management · Quantitative Finance 2019-07-01 Irina Georgescu , Louis Aimé Fono

In this paper we study a continuous time, optimal stochastic investment problem under limited resources in a market with N firms. The investment processes are subject to a time-dependent stochastic constraint. Rather than using a dynamic…

Optimization and Control · Mathematics 2013-08-20 Maria B. Chiarolla , Giorgio Ferrari , Frank Riedel

We develop a formalism to study linearized perturbations around the equilibria of a pure exchange economy. With the use of mean field theory techniques, we derive equations for the flow of products in an economy driven by heterogeneous…

Trading and Market Microstructure · Quantitative Finance 2015-05-13 Samuel E. Vazquez , Simone Severini

We explore a stochastic model that enables capturing external influences in two specific ways. The model allows for the expression of uncertainty in the parametrisation of the stochastic dynamics and incorporates patterns to account for…

Pricing of Securities · Quantitative Finance 2024-04-11 Felix L. Wolf , Griselda Deelstra , Lech A. Grzelak

We study two stylized, multi-agent models aimed at investing a limited, indivisible resource in public transportation. In the first model, we face the decision of which potential stops to open along a (e.g., bus) path, given agents' travel…

Computer Science and Game Theory · Computer Science 2026-02-04 Martin Bullinger , Edith Elkind , Kassian Köck

We present a formal language for specifying qualitative preferences over temporal goals and a preference-based planning method in stochastic systems. Using automata-theoretic modeling, the proposed specification allows us to express…

Artificial Intelligence · Computer Science 2021-03-29 Jie Fu

In the presence of ambiguity on the driving force of market randomness, we consider the dynamic portfolio choice without any predetermined investment horizon. The investment criteria is formulated as a robust forward performance process,…

Mathematical Finance · Quantitative Finance 2019-04-23 Qian Lin , Xianming Sun , Chao Zhou

We study one-sided matching problems where $n$ agents have preferences over $m$ objects and each of them need to be assigned to at most one object. Most work on such problems assume that the agents only have ordinal preferences and usually…

Computer Science and Game Theory · Computer Science 2021-07-13 Thomas Ma , Vijay Menon , Kate Larson