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Machine learning algorithms can now outperform classic economic models in predicting quantities ranging from bargaining outcomes, to choice under uncertainty, to an individual's future jobs and wages. Yet this predictive accuracy comes at a…

Theoretical Economics · Economics 2025-08-27 Annie Liang

We explore the striking mathematical connections that exist between market scoring rules, cost function based prediction markets, and no-regret learning. We show that any cost function based prediction market can be interpreted as an…

Artificial Intelligence · Computer Science 2010-03-02 Yiling Chen , Jennifer Wortman Vaughan

We outline how to create a mechanism that provides an optimal way to elicit, from an arbitrary group of experts, the probability of the truth of an arbitrary logical proposition together with collective information that has an explicit form…

Computer Science and Game Theory · Computer Science 2023-09-04 Alexey V. Osipov , Nikolay N. Osipov

Trend following and momentum investing are common strategies employed by asset managers. Even though they can be helpful in the proper situations, they are limited in the sense that they work just by looking at past, as if we were driving…

Trading and Market Microstructure · Quantitative Finance 2024-07-19 Fernando Berzal , Alberto Garcia

Two-sided matching markets have long existed to pair agents in the absence of regulated exchanges. A common example is school choice, where a matching mechanism uses student and school preferences to assign students to schools. In such…

Machine Learning · Computer Science 2021-09-17 Stefania Ionescu , Yuhao Du , Kenneth Joseph , Anikó Hannák

Machine learning in asset pricing typically predicts expected returns as point estimates, ignoring uncertainty. We develop new methods to construct forecast confidence intervals for expected returns obtained from neural networks. We show…

Econometrics · Economics 2025-03-04 Yuan Liao , Xinjie Ma , Andreas Neuhierl , Linda Schilling

Machine learning (ML) has emerged as a powerful tool for tackling complex regression and classification tasks, yet its success often hinges on the quality of training data. This study introduces an ML paradigm inspired by domain knowledge…

Machine Learning · Computer Science 2025-01-10 Mohsen Rashki

In this work, we aim to design a data marketplace; a robust real-time matching mechanism to efficiently buy and sell training data for Machine Learning tasks. While the monetization of data and pre-trained models is an essential focus of…

Computer Science and Game Theory · Computer Science 2019-05-14 Anish Agarwal , Munther Dahleh , Tuhin Sarkar

We examine two types of binary betting markets, whose primary goal is for profit (such as sports gambling) or to gain information (such as prediction markets). We articulate the interplay between belief and price-setting to analyse both…

Computer Science and Game Theory · Computer Science 2024-06-07 Haiqing Zhu , Alexander Soen , Yun Kuen Cheung , Lexing Xie

To predict the future movements of stock markets, numerous studies concentrate on daily data and employ various machine learning (ML) models as benchmarks that often vary and lack standardization across different research works. This paper…

Computational Finance · Quantitative Finance 2024-07-16 Han Gui

We propose the Artificial Continuous Prediction Market (ACPM) as a means to predict a continuous real value, by integrating a range of data sources and aggregating the results of different machine learning (ML) algorithms. ACPM adapts the…

Artificial Intelligence · Computer Science 2015-08-12 Fatemeh Jahedpari , Marina De Vos , Sattar Hashemi , Benjamin Hirsch , Julian Padget

The research area of algorithms with predictions has seen recent success showing how to incorporate machine learning into algorithm design to improve performance when the predictions are correct, while retaining worst-case guarantees when…

Machine Learning · Computer Science 2022-12-06 Michael Dinitz , Sungjin Im , Thomas Lavastida , Benjamin Moseley , Sergei Vassilvitskii

Determining whether published scientific findings can successfully be replicated is a long-standing challenge in the empirical sciences. Existing approaches for replicability assessment typically rely either on human judgment, i.e.,…

The electricity market has a vital role to play in the decarbonisation of the energy system. However, the electricity market is made up of many different variables and data inputs. These variables and data inputs behave in sometimes…

Multiagent Systems · Computer Science 2022-06-07 Alexander J. M. Kell , Stephen McGough , Matthew Forshaw

Forecast combination -- the aggregation of individual forecasts from multiple experts or models -- is a proven approach to economic forecasting. To date, research on economic forecasting has concentrated on local combination methods, which…

Econometrics · Economics 2024-03-12 Ryan Thompson , Yilin Qian , Andrey L. Vasnev

Machine Learning competitions such as the Netflix Prize have proven reasonably successful as a method of "crowdsourcing" prediction tasks. But these competitions have a number of weaknesses, particularly in the incentive structure they…

Machine Learning · Computer Science 2011-11-14 Jacob Abernethy , Rafael M. Frongillo

Machine learning is central to empirical asset pricing, but portfolio construction still relies on point predictions and largely ignores asset-specific estimation uncertainty. We propose a simple change: sort assets using…

Portfolio Management · Quantitative Finance 2026-01-05 Yan Liu , Ye Luo , Zigan Wang , Xiaowei Zhang

This research paper explores the performance of Machine Learning (ML) algorithms and techniques that can be used for financial asset price forecasting. The prediction and forecasting of asset prices and returns remains one of the most…

Statistical Finance · Quantitative Finance 2020-04-06 Philip Ndikum

Federated learning (FL) is increasingly recognized for its efficacy in training models using locally distributed data. However, the proper valuation of shared data in this collaborative process remains insufficiently addressed. In this…

Machine Learning · Computer Science 2024-02-06 Yue Cui , Liuyi Yao , Yaliang Li , Ziqian Chen , Bolin Ding , Xiaofang Zhou

The rise of Large Language Models (LLMs) has driven progress in reasoning tasks -- from program synthesis to scientific hypothesis generation -- yet their ability to handle ranked preferences and structured algorithms in combinatorial…

Artificial Intelligence · Computer Science 2025-12-09 Hadi Hosseini , Samarth Khanna , Ronak Singh