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We study a phenomenological model for the continuous double auction, equivalent to two independent $M/M/1$ queues. The continuous double auction defines a continuous-time random walk for trade prices. The conditions for ergodicity of the…

Trading and Market Microstructure · Quantitative Finance 2014-03-05 Tijana Radivojević , Jonatha Anselmi , Enrico Scalas

A key feature of information theory is its universality, as it can be applied to study a broad variety of complex systems. However, many information-theoretic measures can vary significantly even across systems with similar properties,…

Information Theory · Computer Science 2024-10-16 Alberto Liardi , Fernando E. Rosas , Robin L. Carhart-Harris , George Blackburne , Daniel Bor , Pedro A. M. Mediano

We mathematically analyze a simple market model where trading at each point in time involves only two agents with the sum of their money being conserved and with neither parties resulting with negative money after the interaction process.…

Statistical Mechanics · Physics 2016-08-31 Arnab Das , Sudhakar Yarlagadda

There's a long tradition of research using computational intelligence (methods from artificial intelligence (AI) and machine learning (ML)), to automatically discover, implement, and fine-tune strategies for autonomous adaptive automated…

Computational Engineering, Finance, and Science · Computer Science 2020-12-01 Dave Cliff , Michael Rollins

The rapid development of artificial intelligence has brought the artificial intelligence threat theory as well as the problem about how to evaluate the intelligence level of intelligent products. Both need to find a quantitative method to…

Artificial Intelligence · Computer Science 2017-12-19 Feng Liu , Yong Shi , Ying Liu

Large Language Models (LLMs) are increasingly employed in high-stakes decision-making tasks, such as loan approvals. While their applications expand across domains, LLMs struggle to process tabular data, ensuring fairness and delivering…

In an era of "moving fast and breaking things", regulators have moved slowly to pick up the safety, bias, and legal debris left in the wake of broken Artificial Intelligence (AI) deployment. While there is much-warranted discussion about…

Computer Science and Game Theory · Computer Science 2026-05-08 Marco Bornstein , Zora Che , Suhas Julapalli , Abdirisak Mohamed , Amrit Singh Bedi , Furong Huang

Practitioners often navigate LLM performance trade-offs by plotting Pareto frontiers of optimal accuracy-cost trade-offs. However, this approach offers no way to compare between LLMs with distinct strengths and weaknesses: for example, a…

Artificial Intelligence · Computer Science 2025-07-08 Michael J. Zellinger , Matt Thomson

We develop a behavioral model for liquidity and volatility based on empirical regularities in trading order flow in the London Stock Exchange. This can be viewed as a very simple agent based model in which all components of the model are…

Statistical Finance · Quantitative Finance 2008-12-02 Szabolcs Mike , J. Doyne Farmer

Safe derivative-free optimization under unknown constraints is a fundamental challenge in modern learning and control. Existing zeroth-order (ZO) methods typically still assume access to a first-order oracle of the constraint functions or…

Optimization and Control · Mathematics 2026-01-29 Runyu Zhang , Gioele Zardini , Asuman Ozdaglar , Jeff Shamma , Na Li

To build general-purpose artificial intelligence systems that can deal with unknown variables across unknown domains, we need benchmarks that measure how well these systems perform on tasks they have never seen before. A prerequisite for…

Artificial Intelligence · Computer Science 2022-05-25 Gautham Venkatasubramanian , Sibesh Kar , Abhimanyu Singh , Shubham Mishra , Dushyant Yadav , Shreyansh Chandak

As AI systems become more intelligent and their behavior becomes more challenging to assess, they may learn to game the flaws of human feedback instead of genuinely striving to follow instructions; however, this risk can be mitigated by…

Artificial Intelligence · Computer Science 2023-12-19 Joshua Clymer , Garrett Baker , Rohan Subramani , Sam Wang

Developing efficient sequential bidding strategies for repeated auctions is an important practical challenge in various marketing tasks. In this setting, the bidding agent obtains information, on both the value of the item at sale and the…

Machine Learning · Computer Science 2021-03-01 Juliette Achddou , Olivier Cappé , Aurélien Garivier

People have long hoped for a conversational system that can assist in real-life situations, and recent progress on large language models (LLMs) is bringing this idea closer to reality. While LLMs are often impressive in performance, their…

Computation and Language · Computer Science 2025-02-06 Linkai Peng , Baorian Nuchged , Yingming Gao

The ability of machine learning (ML) algorithms to generalize well to unseen data has been studied through the lens of information theory, by bounding the generalization error with the input-output mutual information (MI), i.e., the MI…

Machine Learning · Statistics 2024-06-07 Kimia Nadjahi , Kristjan Greenewald , Rickard Brüel Gabrielsson , Justin Solomon

Group-buying auction has become a popular marketing strategy in the last decade. In this paper, a stochastic model is developed for an inventory system subjects to demands from group-buying auctions. The model discussed here takes into the…

Optimization and Control · Mathematics 2012-12-17 Allen H. Tai

We derive a continuous time model for the joint evolution of the mid price and the bid-ask spread from a multiscale analysis of the whole limit order book (LOB) dynamics. We model the LOB as a multiclass queueing system and perform our…

Trading and Market Microstructure · Quantitative Finance 2013-10-07 Jose Blanchet , Xinyun Chen

The standard framework of online bidding algorithm design assumes that the seller commits himself to faithfully implementing the rules of the adopted auction. However, the seller may attempt to cheat in execution to increase his revenue if…

Computer Science and Game Theory · Computer Science 2023-11-28 Qian Wang , Xuanzhi Xia , Zongjun Yang , Xiaotie Deng , Yuqing Kong , Zhilin Zhang , Liang Wang , Chuan Yu , Jian Xu , Bo Zheng

Zero-shot learning (ZSL) methods have been studied in the unrealistic setting where test data are assumed to come from unseen classes only. In this paper, we advocate studying the problem of generalized zero-shot learning (GZSL) where the…

Computer Vision and Pattern Recognition · Computer Science 2017-01-12 Wei-Lun Chao , Soravit Changpinyo , Boqing Gong , Fei Sha

Building on ideas from linguistics, psychology, and social sciences about the possible mechanisms of human decision-making, we propose a novel theoretical framework for the citation analysis. Given the existing trend to investigate citation…

Digital Libraries · Computer Science 2007-06-18 Victor V. Kryssanov , Evgeny L. Kuleshov , Frank J. Rinaldo , Hitoshi Ogawa