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We introduce a mathematical theory called market connectivity that gives concrete ways to both measure the efficiency of markets and find inefficiencies in large markets. The theory leads to new methods for testing the famous efficient…
In speculative markets, risk-free profit opportunities are eliminated by traders exploiting them. Markets are therefore often described as "informationally efficient", rapidly removing predictable price changes, and leaving only residual…
Collusive practices of firms continue to be a major threat to competition and consumer welfare. Academic research on this topic aims at understanding the economic drivers and behavioral patterns of cartels, among others, to guide…
In many prediction problems, the predictive model affects the distribution of the prediction target. This phenomenon is known as performativity and is often caused by the behavior of individuals with vested interests in the outcome of the…
Indirect competition emerged from the complex organization of human societies, and knowledge of the existing network topology may aid in developing effective strategies for success. Here, we propose an agent-based model of competition with…
As artificial agents become increasingly capable, what internal structure is *necessary* for an agent to act competently under uncertainty? Classical results show that optimal control can be *implemented* using belief states or world…
Corruption is notoriously widespread in data collection. Despite extensive research, the existing literature predominantly focuses on specific settings and learning scenarios, lacking a unified view of corruption modelization and…
We introduce pricing formulas for competition and collusion models of two-sided markets with an outside option. For the competition model, we find conditions under which prices and consumer surplus may increase or decrease if the outside…
We discuss the feasibility of predicting, managing and subsequently manipulating, the future evolution of a Complex Adaptive System. Our archetypal system mimics a population of adaptive, interacting objects, such as those arising in the…
Modeling the spread of social contagions is central to various applications in social computing. In this paper, we study the learnability of the competitive threshold model from a theoretical perspective. We demonstrate how competitive…
The principle that 'the brand effect is attractive' underlies preferential attachment. Here we show that the brand effect is just one dimension of attractiveness. Another dimension is competitiveness. We firstly develop a general framework…
A growing literature on human-AI decision-making investigates strategies for combining human judgment with statistical models to improve decision-making. Research in this area often evaluates proposed improvements to models, interfaces, or…
In the classical principal-agent problem, a principal must design a contract to incentivize an agent to perform an action on behalf of the principal. We study the classical principal-agent problem in a setting where the agent can be of one…
Recent studies have shown that the majority of published computational models in systems biology and physiology are not repeatable or reproducible. There are a variety of reasons for this. One of the most likely reasons is that given how…
Competition has been introduced in the electricity markets with the goal of reducing prices and improving efficiency. The basic idea which stays behind this choice is that, in competitive markets, a greater quantity of the good is exchanged…
Strategic argumentation provides a simple model of disputation and negotiation among agents. Although agents might be expected to act in our best interests, there is little that enforces such behaviour. (Maher, 2016) introduced a model of…
We study the competition of two spreading entities, for example innovations, in complex contagion processes in complex networks. We develop an analytical framework and examine the role of dual users, i.e. agents using both technologies.…
A new simple model of diffusion of innovations in a social network with upgrading costs is introduced. Agents are characterized by a single real variable, their technological level. According to local information agents decide whether to…
Online platforms in the Internet Economy commonly incorporate recommender systems that recommend products (or "arms") to users (or "agents"). A key challenge in this domain arises from myopic agents who are naturally incentivized to exploit…
I show that firms price almost competitively and consumers can infer product quality from prices in markets where firms differ in quality and production cost, and learning prices is costly. Bankruptcy risk or regulation links higher quality…