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We present a new approach for studying the problem of optimal hedging of a European option in a finite and complete discrete-time market model. We consider partial hedging strategies that maximize the success probability or minimize the…

Pricing of Securities · Quantitative Finance 2009-10-28 Peter G. Lindberg

The construction of replication strategies for contingent claims in the presence of risk and market friction is a key problem of financial engineering. In real markets, continuous replication, such as in the model of Black, Scholes and…

Machine Learning · Computer Science 2023-07-07 Loris Cannelli , Giuseppe Nuti , Marzio Sala , Oleg Szehr

We consider the problem of learning in single-player and multiplayer multiarmed bandit models. Bandit problems are classes of online learning problems that capture exploration versus exploitation tradeoffs. In a multiarmed bandit model,…

Machine Learning · Statistics 2016-12-02 Naumaan Nayyar , Dileep Kalathil , Rahul Jain

This paper studies a special kind of equilibrium termed as "balanced equilibrium" which arises in the power allocation game defined in \cite{allocation}. In equilibrium, each country in antagonism has to use all of its own power to…

Computer Science and Game Theory · Computer Science 2018-03-13 Yuke Li , A. Stephen Morse

We present a simple game which mimics the complex dynamics found in most natural and social systems. Intelligent players modify their strategies periodically, depending on their performances. We propose that the agents use hybridized…

Statistical Mechanics · Physics 2009-11-07 Marko Sysi-Aho , Anirban Chakraborti , Kimmo Kaski

Strategy improvement is a widely-used and well-studied class of algorithms for solving graph-based infinite games. These algorithms are parameterized by a switching rule, and one of the most natural rules is "all switches" which switches as…

Data Structures and Algorithms · Computer Science 2023-06-22 John Fearnley , Rahul Savani

In machine learning, the notion of multi-armed bandits refers to a class of online learning problems, in which an agent is supposed to simultaneously explore and exploit a given set of choice alternatives in the course of a sequential…

Machine Learning · Computer Science 2021-07-13 Viktor Bengs , Robert Busa-Fekete , Adil El Mesaoudi-Paul , Eyke Hüllermeier

This paper introduces a general multi-agent bandit model in which each agent is facing a finite set of arms and may communicate with other agents through a central controller in order to identify, in pure exploration, or play, in regret…

Machine Learning · Computer Science 2022-10-31 Clémence Réda , Sattar Vakili , Emilie Kaufmann

We present a method for finding optimal hedging policies for arbitrary initial portfolios and market states. We develop a novel actor-critic algorithm for solving general risk-averse stochastic control problems and use it to learn hedging…

Computational Finance · Quantitative Finance 2022-07-18 Phillip Murray , Ben Wood , Hans Buehler , Magnus Wiese , Mikko S. Pakkanen

Complex adaptive systems have been the subject of much recent attention. It is by now well-established that members (`agents') tend to self-segregate into opposing groups characterized by extreme behavior. However, while different social…

Condensed Matter · Physics 2009-11-07 Shahar Hod , Ehud Nakar

In the classic multi-armed bandits problem, the goal is to have a policy for dynamically operating arms that each yield stochastic rewards with unknown means. The key metric of interest is regret, defined as the gap between the expected…

Optimization and Control · Mathematics 2010-11-23 Yi Gai , Bhaskar Krishnamachari , Rahul Jain

We study an independent best-response dynamics on network games in which the nodes (players) decide to revise their strategies independently with some probability. We provide several bounds on the convergence time to an equilibrium as a…

Computer Science and Game Theory · Computer Science 2019-02-07 Paolo Penna , Laurent Viennot

We consider the Max $K$-Armed Bandit problem, where a learning agent is faced with several sources (arms) of items (rewards), and interested in finding the best item overall. At each time step the agent chooses an arm, and obtains a random…

Machine Learning · Statistics 2015-08-25 Yahel David , Nahum Shimkin

A cyber security problem in a networked system formulated as a resilient graph problem based on a game-theoretic approach is considered. The connectivity of the underlying graph of the network system is reduced by an attacker who removes…

Systems and Control · Electrical Eng. & Systems 2023-03-14 Yurid Nugraha , Ahmet Cetinkaya , Tomohisa Hayakawa , Hideaki Ishii , Quanyan Zhu

In many multiagent settings, such as electric vehicle charging and traffic routing, agents must make decisions in the face of uncertain behavior exhibited by others. Often, this uncertainty arises from multiple sources, such as incomplete…

Computer Science and Game Theory · Computer Science 2026-04-28 Andreas Feik , Nicolas Lanzetti , Saverio Bolognani , Florian Dörfler , Dario Paccagnan

Federated learning is a setting where agents, each with access to their own data source, combine models from local data to create a global model. If agents are drawing their data from different distributions, though, federated learning…

Computer Science and Game Theory · Computer Science 2020-12-18 Kate Donahue , Jon Kleinberg

We study a novel variant of the multi-armed bandit problem, where at each time step, the player observes an independently sampled context that determines the arms' mean rewards. However, playing an arm blocks it (across all contexts) for a…

Machine Learning · Computer Science 2020-06-18 Soumya Basu , Orestis Papadigenopoulos , Constantine Caramanis , Sanjay Shakkottai

Humans possess innate collaborative capacities. However, effective teamwork often remains challenging. This study delves into the feasibility of collaboration within teams of rational, self-interested agents who engage in teamwork without…

Multiagent Systems · Computer Science 2024-09-27 Alejandra López de Aberasturi Gómez , Carles Sierra , Jordi Sabater-Mir

A latent bandit problem is one in which the learning agent knows the arm reward distributions conditioned on an unknown discrete latent state. The primary goal of the agent is to identify the latent state, after which it can act optimally.…

Machine Learning · Computer Science 2020-06-17 Joey Hong , Branislav Kveton , Manzil Zaheer , Yinlam Chow , Amr Ahmed , Craig Boutilier

We study a new non-stochastic federated multi-armed bandit problem with multiple agents collaborating via a communication network. The losses of the arms are assigned by an oblivious adversary that specifies the loss of each arm not only…

Machine Learning · Statistics 2023-10-24 Jialin Yi , Milan Vojnović
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