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We represent an exchange economy in terms of statistical ensembles for complex networks by introducing the concept of market configuration. This is defined as a sequence of nonnegative discrete random variables $\{w_{ij}\}$ describing the…

General Finance · Quantitative Finance 2016-09-15 Leonardo Bargigli , Andrea Lionetto , Stefano Viaggiu

The dynamics of networks on Heider balance theory moves toward reducing the tension by constantly reevaluating the interactions to achieve a state of balance. Conflict of interest, however, is inherent in most complex systems; frequently,…

Physics and Society · Physics 2021-02-23 Farideh Oloomi , Razieh Masoumi , Kosar Karimipour , Ali Hosseiny , G. Reza Jafari

The Ricardian model of world trade based on comparative advantage is not sufficient to justify equal trade relations.The existing model of trade relations does not explain the distribution of income among trading countries. This paper…

Trading and Market Microstructure · Quantitative Finance 2025-05-12 N. S. Gonchar , O. P. Dovzhyk , A. S. Zhokhin , W. H. Kozyrsky , A. P. Makhort

Platform giants in China have operated with persistently compressed margins in highly concentrated markets for much of the past decade, despite market shares exceeding 60\% in core segments. Standard theory predicts otherwise: either the…

Theoretical Economics · Economics 2026-01-23 Liang Chen

We consider continuous-time mean-field stochastic games with strategic complementarities. The interaction between the representative productive firm and the population of rivals comes through the price at which the produced good is sold and…

Optimization and Control · Mathematics 2024-02-13 Jodi Dianetti , Salvatore Federico , Giorgio Ferrari , Giuseppe Floccari

Competitive interactions represent one of the driving forces behind evolution and natural selection in biological and sociological systems. For example, animals in an ecosystem may vie for food or mates; in a market economy, firms may…

Physics and Society · Physics 2013-07-03 Jacobo Aguirre , David Papo , Javier M. Buldú

We study the conditions under which input-output networks can dynamically attain a competitive equilibrium, where markets clear and profits are zero. We endow a classical firm network model with minimal dynamical rules that reduce…

General Economics · Economics 2021-11-04 Théo Dessertaine , José Moran , Michael Benzaquen , Jean-Philippe Bouchaud

The theorems we proved describe the structure of economic equilibrium in the exchange economy model. We have studied the structure of property vectors under given structure of demand vectors at which given price vector is equilibrium one.…

Economics · Quantitative Finance 2016-01-20 Nicholas S. Gonchar , Wolodymyr H. Kozyrski , Anatol S. Zhokhin

Motivated by developments in renewable energy and smart grids, we formulate a stylized mathematical model of a transport network with stochastic load fluctuations. Using an affine control rule, we explore the trade-off between the number of…

Optimization and Control · Mathematics 2020-02-24 Alessandro Zocca , Bert Zwart

Competing firms tend to select similar locations for their stores. This phenomenon, called the principle of minimum differentiation, was captured by Hotelling with a landmark model of spatial competition but is still the object of an…

Computer Science and Game Theory · Computer Science 2019-03-12 Matthias Feldotto , Pascal Lenzner , Louise Molitor , Alexander Skopalik

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

This article reviews the recent advances in the uniqueness and multiplicity of competitive equilibria in models arising in mathematical economics, finance, macroeconomics, and trade.

Theoretical Economics · Economics 2024-06-28 Alexis Akira Toda , Kieran James Walsh

We consider a one-period Kyle (1985) framework where the insider can be subject to a penalty if she trades. We establish existence and uniqueness of equilibrium for virtually any penalty function when noise is uniform. In equilibrium, the…

Trading and Market Microstructure · Quantitative Finance 2018-09-21 Sylvain Carré , Pierre Collin-Dufresne , Franck Gabriel

We show that, with indivisible goods, the existence of competitive equilibrium fundamentally depends on agents' substitution effects, not their income effects. Our Equilibrium Existence Duality allows us to transport results on the…

Theoretical Economics · Economics 2020-07-01 Elizabeth Baldwin , Omer Edhan , Ravi Jagadeesan , Paul Klemperer , Alexander Teytelboym

Balanced and swap-robust minimal trades, introduced in [1], are important for studying the balance and stability of server access request protocols under data popularity changes. Constructions of such trades have so far relied on paired…

Information Theory · Computer Science 2023-03-24 Jin Sima , Chao Pan , Olgica Milenkovic

We reply to the recent note "Comment on Synchronization dynamics in non-normal networks: the trade-off for optimality", showing that the authors base their claims mainly on general theoretical arguments that do not necessarily invalidate…

Adaptation and Self-Organizing Systems · Physics 2022-06-20 Riccardo Muolo , Timoteo Carletti , James P. Gleeson , Malbor Asllani

This paper introduces a novel robust trading paradigm, called \textit{multi-double linear policies}, situated within a \textit{generalized} lattice market. Distinctively, our framework departs from most existing robust trading strategies,…

Portfolio Management · Quantitative Finance 2025-04-18 Chung-Han Hsieh , Xin-Yu Wang

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

Despite the stunning progress recently in large-scale deep neural network applications, our understanding of their microstructure, 'energy' functions, and optimal design remains incomplete. Here, we present a new game-theoretic framework,…

Disordered Systems and Neural Networks · Physics 2024-06-06 Venkat Venkatasubramanian , N Sanjeevrajan , Manasi Khandekar , Abhishek Sivaram , Collin Szczepanski

We extend the Exchange Fluctuation Theorem for energy exchange between thermal quantum systems beyond the assumption of molecular chaos, and describe the non-equilibrium exchange dynamics of correlated quantum states. The relation…

Quantum Physics · Physics 2015-10-14 Sania Jevtic , David Jennings , Terry Rudolph , Yuji Hirono , Shojun Nakayama , Mio Murao