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Knightian uncertainty leads naturally to nonlinear expectations. We introduce a corresponding equilibrium concept with sublinear prices and establish their existence. In general, such equilibria lead to Pareto inefficiency and coincide with…

Economics · Quantitative Finance 2016-05-17 Patrick Beissner , Frank Riedel

We propose a new forward electricity market framework that admits heterogeneous market participants with second-order cone strategy sets, who accurately express the nonlinearities in their costs and constraints through conic bids, and a…

Theoretical Economics · Economics 2022-12-20 Anubhav Ratha , Pierre Pinson , Hélène Le Cadre , Ana Virag , Jalal Kazempour

We study the computation of equilibria in prediction markets in perhaps the most fundamental special case with two players and three trading opportunities. To do so, we show equivalence of prediction market equilibria with those of a…

Computer Science and Game Theory · Computer Science 2020-09-09 Jerry Anunrojwong , Yiling Chen , Bo Waggoner , Haifeng Xu

In the first part of this work [32], we introduce a convex parabolic relaxation for quadratically-constrained quadratic programs, along with a sequential penalized parabolic relaxation algorithm to recover near-optimal feasible solutions.…

Optimization and Control · Mathematics 2022-08-09 Ramtin Madani , Mersedeh Ashraphijuo , Mohsen Kheirandishfard , Alper Atamturk

A new, simple method to approach enumerative questions about rational curves on rational surfaces is described. Applications include a short proof of Kontsevich's formula for plane curves and a the solution of the analogous problem for the…

alg-geom · Mathematics 2008-02-03 Lucia Caporaso , Joe Harris

General equilibrium, the cornerstone of modern economics and finance, rests on assumptions many markets do not meet. Spectrum auctions, electricity markets, and cap-and-trade programs for resource rights often feature non-convexities in…

Theoretical Economics · Economics 2023-05-11 Jacob K Goeree

Recent results, establishing evidence of intractability for such restrictive utility functions as additively separable, piecewise-linear and concave, under both Fisher and Arrow-Debreu market models, have prompted the question of whether we…

Computer Science and Game Theory · Computer Science 2010-10-21 Vijay V. Vazirani

We introduce a general framework for flow problems over hypergraphs. In our problem formulation, which we call the convex flow problem, we have a concave utility function for the net flow at every node and a concave utility function for…

Optimization and Control · Mathematics 2024-05-21 Theo Diamandis , Guillermo Angeris , Alan Edelman

Nonconvexities in markets with discrete decisions and nonlinear constraints make efficient pricing challenging, often necessitating subsidies. A prime example is the unit commitment (UC) problem in electricity markets, where costly…

Optimization and Control · Mathematics 2026-02-18 Cheng Guo , Lauren Henderson , Ryan Cory-Wright , Boshi Yang

I show that every rectifiable simple closed curve in the plane can be continuously deformed into a convex curve in a motion which preserves arc length and does not decrease the Euclidean distance between any pair of points on the curve.…

Differential Geometry · Mathematics 2011-11-22 John Pardon

We introduce a new framework for optimal routing and arbitrage in AMM driven markets. This framework improves on the original best-practice convex optimization by restricting the search to the boundary of the optimal space. We can…

Mathematical Finance · Quantitative Finance 2025-02-13 Stefan Loesch , Mark Bentley Richardson

Under a mild technical assumption, we prove a necessary and sufficient condition for a totally real compacdt set in $\mathbb{C}^n$ to be rationally convex. This generalizes a classical result of Duval-Sibony

Complex Variables · Mathematics 2023-10-04 Blake J. Boudreaux , Rasul Shafikov

According to the fundamental theorems of welfare economics, any competitive equilibrium is Pareto efficient. Unfortunately, competitive equilibrium prices only exist under strong assumptions such as perfectly divisible goods and convex…

Computer Science and Game Theory · Computer Science 2023-05-24 Mete Şeref Ahunbay , Martin Bichler , Johannes Knörr

We present a novel complex number formulation along with tight convex relaxations for the aircraft conflict resolution problem. Our approach combines both speed and heading control and provides global optimality guarantees despite…

Computational Engineering, Finance, and Science · Computer Science 2017-09-20 David Rey , Hassan Hijazi

We introduce a model of infinite horizon linear dynamic optimization and obtain results concerning existence of solution and satisfaction of the competitive condition and transversality condition being unconditionally sufficient for…

Optimization and Control · Mathematics 2025-06-23 Somdeb Lahiri

In this paper, is introduced a new proposal of resolvent for equilibrium problems in terms of the Busemann's function. A great advantage of this new proposal is that, in addition to be a natural extension of the proposal in the linear…

Optimization and Control · Mathematics 2021-11-09 G. C. Bento , J. X. Cruz Neto , I. D. L. Melo

Polyhedral convex set optimization problems are the simplest optimization problems with set-valued objective function. Their role in set optimization is comparable to the role of linear programs in scalar optimization. Vector linear…

Optimization and Control · Mathematics 2024-01-26 Andreas Löhne

In this paper the simplicial cone constrained convex quadratic programming problem is studied. The optimality conditions of this problem consist in a linear complementarity problem. This fact, under a suitable condition, leads to an…

Optimization and Control · Mathematics 2015-03-11 J. G. Barrios , O. P. Ferreira , S. Z. Németh

Proportional response is a well-established distributed algorithm which has been shown to converge to competitive equilibria in both Fisher and Arrow-Debreu markets, for various sub-families of homogeneous utilities, including linear and…

Computer Science and Game Theory · Computer Science 2025-06-04 Yun Kuen Cheung , Richard Cole , Yixin Tao

We present an algorithm to approximate the solutions to variational problems where set of admissible functions consists of convex functions. The main motivator behind this numerical method is estimating solutions to Adverse Selection…

Optimization and Control · Mathematics 2008-03-07 Ivar Ekeland , Santiago Moreno