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I study dynamic network formation games in which agents meet stochastically and form links based on their valuation of the network. I show that these games can be represented in terms of the values agents assign to network sub-structures.…

Theoretical Economics · Economics 2025-11-19 Jose M. Betancourt

Many models of market dynamics make use of the idea of conservative wealth exchanges among economic agents. A few years ago an exchange model using extremal dynamics was developed and a very interesting result was obtained: a self-generated…

Physics and Society · Physics 2015-06-12 L. A. Braunstein , P. A. Macri , J. R. Iglesias

Unlike the well-studied models of growing networks, where the dominant dynamics consist of insertions of new nodes and connections, and rewiring of existing links, we study {\em ad hoc} networks, where one also has to contend with rapid and…

Disordered Systems and Neural Networks · Physics 2009-11-10 Nima Sarshar , Vwani Roychowdhury

Peer-to-peer energy trading platforms enable direct electricity exchanges between peers who belong to the same energy community. In a semi-decentralized system, a community manager adheres to grid restrictions while optimizing social…

Optimization and Control · Mathematics 2025-01-17 Estibalitz Ruiz Irusta , Juan M. Morales

The immense success of ML systems relies heavily on large-scale, high-quality data. The high demand for data has led to many paradigms that involve selling, exchanging, and sharing data, motivating the study of economic processes with data…

Computer Science and Game Theory · Computer Science 2024-12-04 Hannaneh Akrami , Bhaskar Ray Chaudhury , Jugal Garg , Aniket Murhekar

We consider the problem of dynamic buying and selling of shares from a collection of $N$ stocks with random price fluctuations. To limit investment risk, we place an upper bound on the total number of shares kept at any time. Assuming that…

Portfolio Management · Quantitative Finance 2009-09-23 Michael J. Neely

Decentralized exchanges (DEXes) have introduced an innovative trading mechanism, where it is not necessary to match buy-orders and sell-orders to execute a trade. DEXes execute each trade individually, and the exchange rate is automatically…

Computational Finance · Quantitative Finance 2021-10-12 Lioba Heimbach , Ye Wang , Roger Wattenhofer

In this paper we study the so-called minimum income condition order, which is used in some day-ahead electricity power exchanges to represent the production-related costs of generating units. This order belongs to the family of complex…

General Economics · Economics 2022-09-02 Dávid Csercsik

We study the competition for partners in two-sided matching markets with heterogeneous agent preferences, with a focus on how the equilibrium outcomes depend on the connectivity in the market. We model random partially connected markets,…

Computer Science and Game Theory · Computer Science 2023-01-12 Yash Kanoria , Seungki Min , Pengyu Qian

We study the problem of exchange when 1) agents are endowed with heterogeneous indivisible objects, and 2) there is no money. In general, no rule satisfies the three central properties Pareto-efficiency, individual rationality, and…

Computer Science and Game Theory · Computer Science 2018-03-08 William Phan , Christopher Purcell

A simple computer simulation model of a closed market on a fixed network with free flow of goods and money is introduced. The model contains only two variables : the amount of goods and money beside the size of the system. An initially flat…

Adaptation and Self-Organizing Systems · Physics 2012-09-25 Marcel Ausloos , Andrzej Pekalski

Collaboration may be understood as the execution of coordinated tasks (in the most general sense) by groups of users, who cooperate for achieving a common goal. Collaboration is a fundamental assumption and requirement for the correct…

Computer Science and Game Theory · Computer Science 2012-07-26 Agustín Santos Méndez , Antonio Fernández Anta , Luis López Fernández

New services based on the best-effort paradigm could complement the current deterministic services of an electronic financial exchange. Four crucial aspects of such systems would benefit from a hybrid stance: proper use of processing…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 David Lyback , Magnus Boman

Often fairness assumptions need to be made in order to establish liveness properties of distributed systems, but in many situations these lead to false conclusions. This document presents a research agenda aiming at laying the foundations…

Logic in Computer Science · Computer Science 2017-11-15 Rob van Glabbeek

We introduce a new framework for the analysis of the dynamics of networks, based on randomly reinforced urn (RRU) processes, in which the weight of the edges is determined by a reinforcement mechanism. We rigorously explain the empirical…

Physics and Society · Physics 2012-03-08 Guido Caldarelli , Alessandro Chessa , Irene Crimaldi , Fabio Pammolli

We introduce balancedness a fairness axiom in house allocation problems. It requires a mechanism to assign the top choice, the second top choice, and so on, on the same number of profiles for each agent. This axiom guarantees equal…

Theoretical Economics · Economics 2021-09-07 Xinghua Long , Rodrigo A. Velez

The objective of this paper is to initiate a qualitative analysis of dynamic flow in traffic networks by using the competitive equilibrium model of multiple market systems. A network is modeled as a dynamic graph where routes (edges) are…

Systems and Control · Computer Science 2017-11-30 Dragoslav D. Šiljak

In this paper we introduce kinetic equations for the evolution of the probability distribution of two goods among a huge population of agents. The leading idea is to describe the trading of these goods by means of some fundamental rules in…

General Finance · Quantitative Finance 2015-06-11 G. Toscani , C. Brugna , S. Demichelis

Deterministic equilibrium flows in transport networks can be investigated by means of Markov's processes defined on the dual graph representations of the network. Sustained movement patterns are generated by a subset of automorphisms of the…

Physics and Society · Physics 2007-10-30 D. Volchenkov , Ph. Blanchard

We study risk-sharing economies where heterogenous agents trade subject to quadratic transaction costs. The corresponding equilibrium asset prices and trading strategies are characterised by a system of nonlinear, fully-coupled…

Portfolio Management · Quantitative Finance 2020-10-01 Martin Herdegen , Johannes Muhle-Karbe , Dylan Possamaï