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This paper investigates the optimal hedging strategies of an informed broker interacting with multiple traders in a financial market. We develop a theoretical framework in which the broker, possessing exclusive information about the drift…

Trading and Market Microstructure · Quantitative Finance 2025-06-11 Philippe Bergault , Pierre Cardaliaguet , Wenbin Yan

We study the price-setting problem of market makers under risk neutrality and perfect competition in continuous time. Thereby we follow the classic Glosten-Milgrom model that defines bid and ask prices as expectations of a true value of the…

Trading and Market Microstructure · Quantitative Finance 2012-10-16 Christoph Kühn , Matthias Riedel

We consider a market where a finite number of players trade an asset whose supply is a stochastic process. The price formation problem consists of finding a price process that ensures that when agents act optimally to minimize their trading…

Analysis of PDEs · Mathematics 2022-08-15 Diogo Gomes , Julian Gutierrez , Ricardo Ribeiro

In this paper, an incentive proactive cache mechanism in cache-enabled small cell networks (SCNs) is proposed, in order to motivate the content providers (CPs) to participate in the caching procedure. A network composed of a single mobile…

Information Theory · Computer Science 2016-09-12 Fei Shen , Kenza Hamidouche , Ejder Baştuğ , Mérouane Debbah

Let $G(V,E)$ be a directed graph with $n$ vertices and $m$ edges. The edges $E$ of $G$ are divided into two types: $E_F$ and $E_P$. Each edge of $E_F$ has a fixed price. The edges of $E_P$ are the priceable edges and their price is not…

Data Structures and Algorithms · Computer Science 2012-07-11 Sergio Cabello

Minimizing the peak power consumption and matching demand to supply, under fixed threshold polices, are two key requirements for the success of the future electricity market. In this work, we consider dynamic pricing methods to minimize the…

Optimization and Control · Mathematics 2016-10-26 Zaid Almahmoud , Jacob Crandall , Khaled Elbassioni , Trung Thanh Nguyen , Mardavij Roozbehani

Employing probabilistic techniques we compute best possible upper and lower bounds on the price of an option on one or two assets with continuous piecewise linear payoff function based on prices of simple call options of possibly distinct…

Probability · Mathematics 2008-12-02 Dimitris Bertsimas , Natasha Bushueva

For two-person dynamic zero-sum games (both discrete and continuous settings), we investigate the limit of value functions of finite horizon games with long run average cost as the time horizon tends to infinity and the limit of value…

Optimization and Control · Mathematics 2017-09-26 Dmitry Khlopin

As computational agents are developed for increasingly complicated e-commerce applications, the complexity of the decisions they face demands advances in artificial intelligence techniques. For example, an agent representing a seller in an…

Artificial Intelligence · Computer Science 2017-01-08 W. P. Birmingham , E. H. Durfee , S. Park

We address a new prize-collecting problem of routing commodities in a given network with hub and non-hub nodes, in which the service of the non-hub nodes will be outsourced to third-party carriers. The problem is modeled as a Stackelberg…

Optimization and Control · Mathematics 2025-10-22 Elena Fernandez , Ivana Ljubic , Nicolas Zerega

Demand-side management (DSM) enables distribution system operators (DSOs) to steer electricity consumption through dynamic price signals or incentive mechanisms, thereby leveraging end-users' flexibility potential for delivering grid…

Optimization and Control · Mathematics 2026-05-04 Silvia Cianchi , Reza Rahimi Baghbadorani , Anibal Sanjab , Sergio Grammatico

In this paper we consider the problem of distributed channel allocation in large networks under the frequency-selective interference channel. Performance is measured by the weighted sum of achievable rates. First we present a natural…

Computer Science and Game Theory · Computer Science 2017-04-14 Ilai Bistritz , Amir Leshem

Stochastic games with discounted payoff, introduced by Shapley, model adversarial interactions in stochastic environments where two players try to optimize a discounted sum of rewards. In this model, long-term weights are geometrically…

Computer Science and Game Theory · Computer Science 2021-10-22 Taylor Dohmen , Ashutosh Trivedi

Stackelberg games have been widely used to model interactive decision-making problems in a variety of domains such as energy systems, transportation, cybersecurity, and human-robot interaction. However, existing algorithms for solving…

Optimization and Control · Mathematics 2023-03-14 Yansong Li , Shuo Han

We consider a basic resource allocation game, where the players' strategy spaces are subsets of $R^m$ and cost/utility functions are parameterized by some common vector $u\in R^m$ and, otherwise, only depend on the own strategy choice. A…

Computer Science and Game Theory · Computer Science 2020-02-24 Tobias Harks

Predicting fading channels is a classical problem with a vast array of applications, including as an enabler of artificial intelligence (AI)-based proactive resource allocation for cellular networks. Under the assumption that the fading…

Information Theory · Computer Science 2022-03-08 Sangwoo Park , Osvaldo Simeone

Despite the advantage of preserving data privacy, federated learning (FL) still suffers from the straggler issue due to the limited computing resources of distributed clients and the unreliable wireless communication environment. By…

Machine Learning · Computer Science 2025-01-06 Bibo Wu , Fang Fang , Xianbin Wang

We propose a game-theoretic framework that incorporates both incomplete information and general ambiguity attitudes on factors external to all players. Our starting point is players' preferences on payoff-distribution vectors, essentially…

Economics · Quantitative Finance 2017-04-04 Jian Yang

We consider the problem of transmission scheduling for the remote estimation of a discrete-time autoregressive Markov process that is driven by white Gaussian noise. A sensor observes this process, and then decides to either encode the…

Optimization and Control · Mathematics 2023-03-30 Manali Dutta , Rahul Singh

We consider a communication system consisting of a server that tracks and publishes updates about a time-varying data source or event, and a gossip network of users interested in closely tracking the event. The timeliness of the information…

Information Theory · Computer Science 2024-04-25 Priyanka Kaswan , Melih Bastopcu , Sennur Ulukus , S. Rasoul Etesami , Tamer Başar