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This paper presents a dynamic game framework to analyze the role of large banks in interbank markets. By extending existing models, we incorporate a large bank as a dynamic decision-maker interacting with multiple small banks. Using the…

Mathematical Finance · Quantitative Finance 2025-04-22 Yuanyuan Chang , Dena Firoozi , David Benatia

We propose a decentralized market model in which agents can negotiate bilateral contracts. This builds on a similar, but centralized, model of trading networks introduced by Hatfield et al. in 2013. Prior work has established that…

Computer Science and Game Theory · Computer Science 2025-01-29 Edwin Lock , Benjamin Patrick Evans , Eleonora Kreacic , Sujay Bhatt , Alec Koppel , Sumitra Ganesh , Paul W. Goldberg

Implicit discourse relation recognition is a challenging task due to the absence of the necessary informative clue from explicit connectives. The prediction of relations requires a deep understanding of the semantic meanings of sentence…

Computation and Language · Computer Science 2019-08-30 Hongxiao Bai , Hai Zhao , Junhan Zhao

An interbank market lets participants pool the risk arising from the combination of illiquid investments and random withdrawals by depositors. But it also creates the potential for one bank's failure to trigger off avalanches of further…

Disordered Systems and Neural Networks · Physics 2009-11-07 Giulia Iori , Saqib Jafarey

A model of associative memory is studied, which stores and reliably retrieves many more patterns than the number of neurons in the network. We propose a simple duality between this dense associative memory and neural networks commonly used…

Neural and Evolutionary Computing · Computer Science 2017-03-28 Dmitry Krotov , John J Hopfield

We introduce a method to infer lead-lag networks of agents' actions in complex systems. These networks open the way to both microscopic and macroscopic states prediction in such systems. We apply this method to trader-resolved data in the…

Trading and Market Microstructure · Quantitative Finance 2018-07-27 Damien Challet , Rémy Chicheportiche , Mehdi Lallouache , Serge Kassibrakis

Interaction strategies for reward in competitive environments are significantly influenced by the nature and extent of available information. In financial markets, particularly foreign exchange (forex), traders operate independently with…

Computational Engineering, Finance, and Science · Computer Science 2024-12-03 Patrick Naivasha , George Musumba , Patrick Gikunda , John Wandeto

In this paper we consider a mean-field model of interacting diffusions for the monetary reserves in which the reserves are subjected to a self- and cross-exciting shock. This is motivated by the financial acceleration and fire sales…

Mathematical Finance · Quantitative Finance 2018-06-11 Anastasia Borovykh , Andrea Pascucci , Stefano la Rovere

We use machine learning techniques to investigate whether it is possible to replicate the behavior of bank managers who assess the risk of commercial loans made by a large commercial US bank. Even though a typical bank already relies on an…

Econometrics · Economics 2022-02-10 Matthew Harding , Gabriel F. R. Vasconcelos

Truth discovery is to resolve conflicts and find the truth from multiple-source statements. Conventional methods mostly research based on the mutual effect between the reliability of sources and the credibility of statements, however, pay…

Computation and Language · Computer Science 2016-11-08 Luyang Li , Bing Qin , Wenjing Ren , Ting Liu

As a result of the greater availability of big data, as well as the decreasing costs and increasing power of modern computing, the use of artificial neural networks for financial time series forecasting is once again a major topic of…

Machine Learning · Statistics 2021-04-21 Adam Balusik , Jared de Magalhaes , Rendani Mbuvha

Effective modeling of human interactions is of utmost importance when forecasting behaviors such as future trajectories. Each individual, with its motion, influences surrounding agents since everyone obeys to social non-written rules such…

Computer Vision and Pattern Recognition · Computer Science 2024-02-20 Francesco Marchetti , Federico Becattini , Lorenzo Seidenari , Alberto Del Bimbo

Network regression models, where the outcome comprises the valued edge in a network and the predictors are actor or dyad-level covariates, are used extensively in the social and biological sciences. Valid inference relies on accurately…

Methodology · Statistics 2021-06-09 Mengjie Pan , Tyler H. McCormick , Bailey K. Fosdick

We propose a simple model of inter-bank borrowing and lending where the evolution of the log-monetary reserves of $N$ banks is described by a system of diffusion processes coupled through their drifts in such a way that stability of the…

Pricing of Securities · Quantitative Finance 2013-08-12 Rene Carmona , Jean-Pierre Fouque , Li-Hsien Sun

We develop a method using parameterized linear equations to define trading mechanisms in market design models. Our method adeptly addresses challenges arising from factors such as complex endowments or coarse priorities, while offering…

Theoretical Economics · Economics 2025-08-18 Jingsheng Yu , Jun Zhang

It is widely acknowledged that the performance of Transformer models is logarithmically related to their number of parameters and computational complexity. While approaches like Mixture of Experts (MoE) decouple parameter count from…

Machine Learning · Computer Science 2025-02-07 Zihao Huang , Qiyang Min , Hongzhi Huang , Defa Zhu , Yutao Zeng , Ran Guo , Xun Zhou

We present a neural network for predicting purchasing intent in an Ecommerce setting. Our main contribution is to address the significant investment in feature engineering that is usually associated with state-of-the-art methods such as…

Machine Learning · Computer Science 2018-07-24 Humphrey Sheil , Omer Rana , Ronan Reilly

In this article we propose a study of market models starting from a set of axioms, as one does in the case of risk measures. We define a market model simply as a mapping from the set of adapted strategies to the set of random variables…

Mathematical Finance · Quantitative Finance 2015-12-08 Mario Sikic

Conventional Supervised Learning approaches focus on the mapping from input features to output labels. After training, the learnt models alone are adapted onto testing features to predict testing labels in isolation, with training data…

Machine Learning · Computer Science 2021-06-16 Yi Luo , Aiguo Chen , Bei Hui , Ke Yan

We introduce a two-player model of reinforcement learning with memory. Past actions of an iterated game are stored in a memory and used to determine player's next action. To examine the behaviour of the model some approximate methods are…

Statistical Mechanics · Physics 2009-11-13 Adam Lipowski , Krzysztof Gontarek , Marcel Ausloos