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Related papers: Budget Constraints in Prediction Markets

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Augmenting the input of algorithms with predictions is an algorithm design paradigm that suggests leveraging a (possibly erroneous) prediction to improve worst-case performance guarantees when the prediction is perfect (consistency), while…

Computer Science and Game Theory · Computer Science 2025-11-20 Georgios Amanatidis , Evangelos Markakis , Christodoulos Santorinaios , Guido Schäfer , Panagiotis Tsamopoulos , Artem Tsikiridis

In online advertising markets, budget-constrained advertisers acquire ad placements through repeated bidding in auctions on various platforms. We present a strategy for bidding optimally in a set of auctions that may or may not be…

Computer Science and Game Theory · Computer Science 2023-06-14 Fransisca Susan , Negin Golrezaei , Okke Schrijvers

Prior work has investigated variations of prediction markets that preserve participants' (differential) privacy, which formed the basis of useful mechanisms for purchasing data for machine learning objectives. Such markets required…

Computer Science and Game Theory · Computer Science 2018-10-30 Rafael Frongillo , Bo Waggoner

In this paper, we show a tight approximation guarantee for budget-feasible mechanisms with an additive buyer. We propose a new simple randomized mechanism with approximation ratio of $2$, improving the previous best known result of $3$. Our…

Computer Science and Game Theory · Computer Science 2020-07-22 Nick Gravin , Yaonan Jin , Pinyan Lu , Chenhao Zhang

Although both data availability and the demand for accurate forecasts are increasing, collaboration between stakeholders is often constrained by data ownership and competitive interests. In contrast to recent proposals within cooperative…

Machine Learning · Computer Science 2026-05-14 Michael Vitali , Pierre Pinson

We study revenue maximization in a buyer-seller setting where the seller has a single object and the buyer has both a private valuation and a private budget. Private budgets complicate the classic single-product monopoly problem, making…

Computer Science and Game Theory · Computer Science 2026-04-30 Juan Carlos Carbajal , Ahuva Mualem

This paper studies markets where a set of indivisible items is sold to bidders with quasilinear, unit-demand valuations, subject to a hard budget constraint. Without financial constraints the well-known assignment market model of Shapley…

Computer Science and Game Theory · Computer Science 2025-07-16 Eleni Batziou , Martin Bichler , Maximilian Fichtl

Randomized mechanisms, which map a set of bids to a probability distribution over outcomes rather than a single outcome, are an important but ill-understood area of computational mechanism design. We investigate the role of randomized…

Computer Science and Game Theory · Computer Science 2009-04-17 Patrick Briest , Shuchi Chawla , Robert Kleinberg , S. Matthew Weinberg

We study the most famous example of a large financial market: the Arbitrage Pricing Model, where investors can trade in a one-period setting with countably many assets admitting a factor structure. We consider the problem of maximising…

Portfolio Management · Quantitative Finance 2020-10-06 Laurence Carassus , Miklos Rasonyi

We present the first analysis of Fisher markets with buyers that have budget-additive utility functions. Budget-additive utilities are elementary concave functions with numerous applications in online adword markets and revenue optimization…

Computer Science and Game Theory · Computer Science 2016-05-03 Xiaohui Bei , Jugal Garg , Martin Hoefer , Kurt Mehlhorn

The football transfer market is a complex, dynamic environment in which clubs compete to acquire players who strengthen their squads. While several frameworks estimate a player's worth, a comprehensive approach that captures both squad…

Applications · Statistics 2026-05-15 Tathagata Basu , Soudeep Deb , Rishideep Roy

We study a game played between advertisers in an online ad platform. The platform sells ad impressions by first-price auction and provides autobidding algorithms that optimize bids on each advertiser's behalf, subject to advertiser…

Computer Science and Game Theory · Computer Science 2023-11-16 Yiding Feng , Brendan Lucier , Aleksandrs Slivkins

In electricity markets, customers are increasingly constrained by their budgets. A budget constraint for a user is an upper bound on the price multiplied by the quantity. However, since prices are determined by the market equilibrium, the…

Computer Science and Game Theory · Computer Science 2026-03-24 Lila Perkins , Baosen Zhang

We study a discrete-time financial market with a single constrained trader, competitive market makers, and noise traders. Within the class of linear equilibria, the equilibrium structure is shown to be uniquely determined by two state…

Mathematical Finance · Quantitative Finance 2025-08-15 Heeyoung Kwon , Jin Hyuk Choi

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 develop a hyperparameter optimisation algorithm, Automated Budget Constrained Training (AutoBCT), which balances the quality of a model with the computational cost required to tune it. The relationship between hyperparameters, model…

Machine Learning · Statistics 2024-02-06 Lukas Cironis , Jan Palczewski , Georgios Aivaliotis

In robust combinatorial optimization, we would like to find a solution that performs well under all realizations of an uncertainty set of possible parameter values. How we model this uncertainty set has a decisive influence on the…

Optimization and Control · Mathematics 2024-04-30 Marc Goerigk , Mohammad Khosravi

This paper extends the optimal-trading framework developed in arXiv:2409.03586v1 to compute optimal strategies with real-world constraints. The aim of the current paper, as with the previous, is to study trading in the context of…

Trading and Market Microstructure · Quantitative Finance 2024-09-26 Neil A. Chriss

A speculative agent with Prospect Theory preference chooses the optimal time to purchase and then to sell an indivisible risky asset to maximize the expected utility of the round-trip profit net of transaction costs. The optimization…

Mathematical Finance · Quantitative Finance 2022-10-26 Alex S. L. Tse , Harry Zheng

Trading frictions are stochastic. They are, moreover, in many instances fast-mean reverting. Here, we study how to optimally trade in a market with stochastic price impact and study approximations to the resulting optimal control problem…

Mathematical Finance · Quantitative Finance 2023-08-25 Jean-Pierre Fouque , Sebastian Jaimungal , Yuri F. Saporito