Related papers: Money as Minimal Complexity
We study the problem of designing revenue-maximizing mechanisms for a selfish mediator who facilitates trade between a buyer and a seller. We consider a setting where the mediator does not have information advantage and the buyer's…
The Multicut problem asks for a minimum cut separating certain pairs of vertices: formally, given a graph $G$ and demand graph $H$ on a set $T\subseteq V(G)$ of terminals, the task is to find a minimum-weight set $C$ of edges of $G$ such…
In the multi-unit pricing problem, multiple units of a single item are for sale. A buyer's valuation for $n$ units of the item is $v \min \{ n, d\} $, where the per unit valuation $v$ and the capacity $d$ are private information of the…
We consider an economic environment with one buyer and one seller. For a bundle $(t,q)\in [0,\infty[\times [0,1]=\mathbb{Z}$, $q$ refers to the winning probability of an object, and $t$ denotes the payment that the buyer makes. We consider…
In multi-item screening, optimal selling mechanisms are challenging to characterize and implement, even with full knowledge of valuation distributions. In this paper, we aim to develop tractable, interpretable, and implementable mechanisms…
Understanding the structure and formation of networks is a central topic in complexity science. Economic networks are formed by decisions of individual agents and thus not properly described by established random graph models. In this…
The common way to optimize auction and pricing systems is to set aside a small fraction of the traffic to run experiments. This leads to the question: how can we learn the most with the smallest amount of data? For truthful auctions, this…
We study the problem of finding a minimum homology basis, that is, a lightest set of cycles that generates the $1$-dimensional homology classes with $\mathbb{Z}_2$ coefficients in a given simplicial complex $K$. This problem has been…
A modern version of Monetary Circuit Theory with a particular emphasis on stochastic underpinning mechanisms is developed. It is explained how money is created by the banking system as a whole and by individual banks. The role of central…
The minimum cut problem in an undirected and weighted graph $G$ is to find the minimum total weight of a set of edges whose removal disconnects $G$. We completely characterize the quantum query and time complexity of the minimum cut problem…
We efficiently solve the optimal multi-dimensional mechanism design problem for independent bidders with arbitrary demand constraints when either the number of bidders is a constant or the number of items is a constant. In the first…
The 'minimal' payment - a payment method which minimizes the number of coins in a purse - is presented. We focus on a time series of change given back to a shopper repeating the minimal payment. The delay plot shows visually that the set of…
A diagram $\mathcal{D} = (G, l)$ over a monoid $M$ is an oriented graph $G = (V, E)$ endowed with a labeling $l\colon E \to M$. A diagram is commutative if and only if for any two oriented paths with the same endpoints, the products in $M$…
City road infrastructure is a public good, and over-consumption by self-interested, rational individuals leads to traffic jams. Congestion pricing is effective in reducing demand to sustainable levels, but also controversial, as it…
Beyond its obvious macro-economic relevance, fiat money has important micro-economic implications. They matter for addressing No. 8 in Smale's "Mathematical Problems for the Next Century": extend the mathematical model of general…
Automated market makers (AMMs) are one of the most prominent decentralized finance (DeFi) applications. AMMs allow users to trade different types of crypto-tokens, without the need to find a counter-party. There are several implementations…
We have studied here the self-organising features of the dynamics of a model market, where the agents `trade' for a single commodity with their money. The model market consists of fixed numbers of economic agents, money supply and…
The lattice of monotone triangles $(\mathfrak{M}_n,\le)$ ordered by entry-wise comparisons is studied. Let $\tau_{\min}$ denote the unique minimal element in this lattice, and $\tau_{\max}$ the unique maximum. The number of $r$-tuples of…
Understanding the dynamics of financial transactions among people is critical for various applications such as fraud detection. One important aspect of financial transaction networks is temporality. The order and repetition of transactions…
In this paper, we introduce a novel framework to model the exchange rate dynamics between two intrinsically linked cryptoassets, such as stablecoins pegged to the same fiat currency or a liquid staking token and its associated native token.…