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In this paper we present a theoretical framework for determining dynamic ask and bid prices of derivatives using the theory of dynamic coherent acceptability indices in discrete time. We prove a version of the First Fundamental Theorem of…

Risk Management · Quantitative Finance 2013-06-13 Tomasz R. Bielecki , Igor Cialenco , Ismail Iyigunler , Rodrigo Rodriguez

We study the consensus formation for an agents based model, generalizing that originally proposed by Krause \cite{Kr}, by allowing the communication channels between any couple of agents to be switched on or off randomly, at each time step,…

Social and Information Networks · Computer Science 2026-03-26 Gianfelice Michele , Giuseppe Scola

In this paper, a distributed optimization problem with general differentiable convex objective functions is studied for single-integrator and double-integrator multi-agent systems. Two distributed adaptive optimization algorithm is…

Optimization and Control · Mathematics 2017-03-28 Peng Lin , Wei Ren

We study a discrete-time consumption-based capital asset pricing model under expectations-based reference-dependent preferences. More precisely, we consider an endowment economy populated by a representative agent who derives utility from…

Mathematical Finance · Quantitative Finance 2024-01-24 Luca De Gennaro Aquino , Xuedong He , Moris Simon Strub , Yuting Yang

It is known that individual opinions on different policy issues often align to a dominant ideological dimension (e.g. "left" vs. "right") and become increasingly polarized. We provide an agent-based model that reproduces these two stylized…

Physics and Society · Physics 2020-10-28 Simon Schweighofer , David Garcia , Frank Schweitzer

Projected gradient methods are widely used for constrained optimization. A key application is for partial differential equations (PDEs), where the objective functional represents physical energy and the linear constraints enforce…

Optimization and Control · Mathematics 2025-06-05 Ruchi Guo , Jun Zou

In contextual dynamic pricing, a seller sequentially prices goods based on contextual information. Buyers will purchase products only if the prices are below their valuations. The goal of the seller is to design a pricing strategy that…

Machine Learning · Statistics 2025-02-14 Matilde Tullii , Solenne Gaucher , Nadav Merlis , Vianney Perchet

We explain the main concepts of Prospect Theory and Cumulative Prospect Theory within the framework of rational dynamic asset pricing theory. We derive option pricing formulas when asset returns are altered with a generalized Prospect…

General Finance · Quantitative Finance 2020-03-10 Svetlozar Rachev , Frank J. Fabozzi , Boryana Racheva-Iotova , Abootaleb Shirvani

Cumulative Prospect Theory (CPT) is a modeling tool widely used in behavioral economics and cognitive psychology that captures subjective decision making of individuals under risk or uncertainty. In this paper, we propose a dynamic pricing…

Computers and Society · Computer Science 2019-12-02 Yue Guan , Anuradha M. Annaswamy , H. Eric Tseng

Market-based mechanisms such as auctions are being studied as an appropriate means for resource allocation in distributed and mulitagent decision problems. When agents value resources in combination rather than in isolation, they must often…

Artificial Intelligence · Computer Science 2013-01-30 Craig Boutilier , Moises Goldszmidt , Bikash Sabata

This work studies a dynamic mechanism design problem in which a principal delegates decision makings to a group of privately-informed agents without the monetary transfer or burning. We consider that the principal privately possesses…

Computer Science and Game Theory · Computer Science 2022-01-19 Tao Zhang , Quanyan Zhu

Model-free and model-based reinforcement learning are two ends of a spectrum. Learning a good policy without a dynamic model can be prohibitively expensive. Learning the dynamic model of a system can reduce the cost of learning the policy,…

Robotics · Computer Science 2022-01-19 Arash Mehrjou , Ashkan Soleymani , Stefan Bauer , Bernhard Schölkopf

Following the paradigm set by attraction-repulsion-alignment schemes, a myriad of individual based models have been proposed to calculate the evolution of abstract agents. While the emergent features of many agent systems have been…

Physics and Society · Physics 2019-05-03 Rafael Bailo , José A. Carrillo , Pierre Degond

Given (small amounts of) time-series' data from a high-dimensional, fine-grained, multiscale dynamical system, we propose a generative framework for learning an effective, lower-dimensional, coarse-grained dynamical model that is predictive…

Machine Learning · Statistics 2021-01-18 Sebastian Kaltenbach , Phaedon-Stelios Koutsourelakis

We study time consistent dynamic pricing mechanisms of European contingent claims under uncertainty by using G framework introduced by Peng ([24]). We consider a financial market consisting of a riskless asset and a risky stock with price…

Pricing of Securities · Quantitative Finance 2013-10-01 Wei Chen

We address a dynamic pricing problem for airlines aiming to maximize expected revenue from selling cargo space on a single-leg flight. The cargo shipments' weight and volume are uncertain and their precise values remain unavailable at the…

Optimization and Control · Mathematics 2024-04-09 Chengyu Du , Fang He , Xi Lin

We study the problem of determination of asset prices in an incomplete market proposing three different but related scenarios. One scenario uses a market game approach whereas the other two are based on risk sharing or regret minimizing…

Pricing of Securities · Quantitative Finance 2009-03-24 Lampros Boukas , Diogo Pinheiro , Alberto Pinto , Stylianos Xanthopoulos , Athanasios Yannacopoulos

Recently, there is growing interest and need for dynamic pricing algorithms, especially, in the field of online marketplaces by offering smart pricing options for big online stores. We present an approach to adjust prices based on the…

Optimization and Control · Mathematics 2021-01-13 David Müller , Yurii Nesterov , Vladimir Shikhman

Agents that negotiate with humans find broad applications in pedagogy and conversational AI. Most efforts in human-agent negotiations rely on restrictive menu-driven interfaces for communication. To advance the research in language-based…

Computation and Language · Computer Science 2021-03-01 Kushal Chawla , Gale Lucas , Jonathan May , Jonathan Gratch

Feedback optimization is an increasingly popular control paradigm to optimize dynamical systems, accounting for control objectives that concern the system operation at steady-state. Existing feedback optimization techniques heavily rely on…

Optimization and Control · Mathematics 2025-04-08 Amir Mehrnoosh , Gianluca Bianchin