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We consider the multi-period portfolio optimization problem with a single asset that can be held long or short. Due to the presence of transaction costs, maximizing the immediate reward at each period may prove detrimental, as frequent…

Optimization and Control · Mathematics 2025-02-07 Chutian Ma , Paul Smith

Aiming to overcome some of the limitations of worst-case analysis, the recently proposed framework of "algorithms with predictions" allows algorithms to be augmented with a (possibly erroneous) machine-learned prediction that they can use…

Computer Science and Game Theory · Computer Science 2024-03-28 Eric Balkanski , Vasilis Gkatzelis , Xizhi Tan , Cherlin Zhu

Motivated by autobidding systems in online advertising, we study revenue maximization in markets with divisible goods and budget-constrained buyers with linear valuations. Our aim is to compute a single price for each good and an allocation…

Computer Science and Game Theory · Computer Science 2026-02-17 Ioannis Caragiannis , Anders Bo Ipsen , Stratis Skoulakis

We study the power of item-pricing as a tool for approximately optimizing social welfare in a combinatorial market. We consider markets with $m$ indivisible items and $n$ buyers. The goal is to set prices to the items so that, when agents…

Computer Science and Game Theory · Computer Science 2015-11-10 Michal Feldman , Nick Gravin , Brendan Lucier

Today's online platforms heavily lean on algorithmic recommendations for bolstering user engagement and driving revenue. However, these recommendations can impact multiple stakeholders simultaneously -- the platform, items (sellers), and…

Information Retrieval · Computer Science 2024-05-28 Qinyi Chen , Jason Cheuk Nam Liang , Negin Golrezaei , Djallel Bouneffouf

We consider a revenue-maximizing seller with $m$ heterogeneous items and a single buyer whose valuation $v$ for the items may exhibit both substitutes (i.e., for some $S, T$, $v(S \cup T) < v(S) + v(T)$) and complements (i.e., for some $S,…

Computer Science and Game Theory · Computer Science 2017-04-11 Alon Eden , Michal Feldman , Ophir Friedler , Inbal Talgam-Cohen , S. Matthew Weinberg

In digital goods auctions, there is an auctioneer who sells an item with unlimited supply to a set of potential buyers, and the objective is to design truthful auction to maximize the total profit of the auctioneer. Motivated from an…

Computer Science and Game Theory · Computer Science 2011-07-27 Nick Gravin , Pinyan Lu

For selling a single item to agents with independent but non-identically distributed values, the revenue optimal auction is complex. With respect to it, Hartline and Roughgarden (2009) showed that the approximation factor of the…

Computer Science and Game Theory · Computer Science 2016-11-17 Saeed Alaei , Jason Hartline , Rad Niazadeh , Emmanouil Pountourakis , Yang Yuan

We study the revenue guarantees and approximability of item pricing. Recent work shows that with $n$ heterogeneous items, item-pricing guarantees an $O(\log n)$ approximation to the optimal revenue achievable by any (buy-many) mechanism,…

Computer Science and Game Theory · Computer Science 2021-11-08 Shuchi Chawla , Rojin Rezvan , Yifeng Teng , Christos Tzamos

The efficient market hypothesis (EMH) famously stated that prices fully reflect the information available to traders. This critically depends on the transfer of information into prices through trading strategies. Traders optimise their…

Mathematical Finance · Quantitative Finance 2025-01-14 Paolo Barucca , Flaviano Morone

We consider an exchange who wishes to set suitable make-take fees to attract liquidity on its platform. Using a principal-agent approach, we are able to describe in quasi-explicit form the optimal contract to propose to a market maker. This…

Trading and Market Microstructure · Quantitative Finance 2019-11-27 Omar El Euch , Thibaut Mastrolia , Mathieu Rosenbaum , Nizar Touzi

In revenue maximization of selling a digital product in a social network, the utility of an agent is often considered to have two parts: a private valuation, and linearly additive influences from other agents. We study the incomplete…

Computer Science and Game Theory · Computer Science 2011-09-27 Wei Chen , Pinyan Lu , Xiaorui Sun , Bo Tang , Yajun Wang , Zeyuan Allen Zhu

This paper develops algorithms to solve strong-substitutes product-mix auctions. That is, it finds competitive equilibrium prices and quantities for agents who use this auction's bidding language to truthfully express their…

Computer Science and Game Theory · Computer Science 2023-07-11 Elizabeth Baldwin , Paul W. Goldberg , Paul Klemperer , Edwin Lock

In many online advertisement (ad) exchanges, ad slots are each sold via a separate second-price auction. This paper considers the bidder's problem of maximizing the value of ads they purchase in these auctions, subject to budget…

Computer Science and Game Theory · Computer Science 2020-03-16 Jonathan Amar , Nicholas Renegar

Exchange markets are a significant type of market economy, in which each agent holds a budget and certain (divisible) resources available for trading. Most research on equilibrium in exchange economies is based on an environment of…

Computer Science and Game Theory · Computer Science 2024-10-10 Yusen Zheng , Yukun Cheng , Chenyang Xu , Xiaotie Deng

We study a problem of an online retailer who observes the unit sales of a product, and dynamically changes the retail price, in order to maximize the expected revenue. Assuming the demand of the product is price sensitive, we are interested…

Systems and Control · Electrical Eng. & Systems 2021-06-17 Chengcheng Liu , Mátyás A. Sustik

We consider the problem of dynamic buying and selling of shares from a collection of $N$ stocks with random price fluctuations. To limit investment risk, we place an upper bound on the total number of shares kept at any time. Assuming that…

Portfolio Management · Quantitative Finance 2009-09-23 Michael J. Neely

Collusion in market pricing is a concept associated with human actions to raise market prices through artificially limited supply. Recently, the idea of algorithmic collusion was put forward, where the human action in the pricing process is…

Theoretical Economics · Economics 2025-01-29 Suzie Grondin , Arthur Charpentier , Philipp Ratz

We study how to maximize the broker's (expected) profit in a two-sided market, where she buys items from a set of sellers and resells them to a set of buyers. Each seller has a single item to sell and holds a private value on her item, and…

Computer Science and Game Theory · Computer Science 2019-05-24 Jing Chen , Bo Li , Yingkai Li

We consider the Max-Buying Problem with Limited Supply, in which there are $n$ items, with $C_i$ copies of each item $i$, and $m$ bidders such that every bidder $b$ has valuation $v_{ib}$ for item $i$. The goal is to find a pricing $p$ and…

Computer Science and Game Theory · Computer Science 2013-10-01 Cristina G. Fernandes , Rafael C. S. Schouery