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We investigate approximately optimal mechanisms in settings where bidders' utility functions are non-linear; specifically, convex, with respect to payments (such settings arise, for instance, in procurement auctions for energy). We provide…

Computer Science and Game Theory · Computer Science 2017-02-23 Amy Greenwald , Takehiro Oyakawa , Vasilis Syrgkanis

Efficient and truthful mechanisms to price resources on remote servers/machines has been the subject of much work in recent years due to the importance of the cloud market. This paper considers revenue maximization in the online stochastic…

Computer Science and Game Theory · Computer Science 2024-02-20 Shant Boodaghians , Federico Fusco , Stefano Leonardi , Yishay Mansour , Ruta Mehta

We analyze a model of selling a single object to a principal-agent pair who want to acquire the object for a firm. The principal and the agent have different assessments of the object's value to the firm. The agent is budget-constrained…

Theoretical Economics · Economics 2024-10-07 Debasis Mishra , Kolagani Paramahamsa

We consider a sequential decision-making setting where, at every round $t$, a market maker posts a bid price $B_t$ and an ask price $A_t$ to an incoming trader (the taker) with a private valuation for one unit of some asset. If the trader's…

Computer Science and Game Theory · Computer Science 2025-06-18 Nicolò Cesa-Bianchi , Tommaso Cesari , Roberto Colomboni , Luigi Foscari , Vinayak Pathak

We consider a mobile market driven by two Mobile Network Operators (MNOs) and a new competitor Mobile Virtual Network Operator (MVNO). The MNOs can partner with the entrant MVNO by leasing network resources; however, the MVNO can also rely…

Networking and Internet Architecture · Computer Science 2018-12-14 Nesrine Ben Khalifa , Amal Benhamiche , Alain Simonian , Marc Bouillon

We propose a solution and a mechanism for two-agent social choice problems with large (infinite) policy spaces. Our solution is an efficient compromise rule between the two agents, built on a common cardinalization of their preferences. Our…

Theoretical Economics · Economics 2026-02-03 Federico Echenique , Matías Núñez

In this paper the problem of optimal derivative design, profit maximization and risk minimization under adverse selection when multiple agencies compete for the business of a continuum of heterogenous agents is studied. The presence of ties…

Trading and Market Microstructure · Quantitative Finance 2011-07-06 Ulrich Horst , Santiago Moreno-Bromberg

Horizontal agreements can fall within the scope of exemptions to antitrust competition if they are expected to create pro-consumer benefits. Inspired by such horizontal agreements, we introduce a cooperative game in which a set of transport…

Optimization and Control · Mathematics 2021-09-09 Loe Schlicher , Virginie Lurkin

To exploit users' heterogeneous data demands, several mobile network operators worldwide have launched the mobile data trading markets, where users can trade mobile data quota with each other. In this paper, we aim to understand the…

Computer Science and Game Theory · Computer Science 2020-12-07 Junlin Yu , Man Hon Cheung , Jianwei Huang

We study the fundamental problem of designing contracts in principal-agent problems under uncertainty. Previous works mostly addressed Bayesian settings in which principal's uncertainty is modeled as a probability distribution over agent's…

Computer Science and Game Theory · Computer Science 2024-02-22 Martino Bernasconi , Matteo Castiglioni , Alberto Marchesi

This paper studies the optimal investment problem with random endowment in an inventory-based price impact model with competitive market makers. Our goal is to analyze how price impact affects optimal policies, as well as both pricing rules…

Mathematical Finance · Quantitative Finance 2018-12-10 Michail Anthropelos , Scott Robertson , Konstantinos Spiliopoulos

We construct and study market models admitting optimal arbitrage. We say that a model admits optimal arbitrage if it is possible, in a zero-interest rate setting, starting with an initial wealth of 1 and using only positive portfolios, to…

Pricing of Securities · Quantitative Finance 2013-12-19 Huy N. Chau , Peter Tankov

Market making is one of the most important aspects of algorithmic trading, and it has been studied quite extensively from a theoretical point of view. The practical implementation of so-called "optimal strategies" however suffers from the…

Trading and Market Microstructure · Quantitative Finance 2018-06-14 Xiaofei Lu , Frédéric Abergel

In this paper, we introduce a preliminary model for interactions in the data market. Recent research has shown ways in which a data aggregator can design mechanisms for users to ensure the quality of data, even in situations where the users…

Computer Science and Game Theory · Computer Science 2017-04-06 Tyler Westenbroek , Roy Dong , Lillian J. Ratliff , S. Shankar Sastry

We study the problem of finding the optimal bidding strategy for an advertiser in a multi-platform auction setting. The competition on a platform is captured by a value and a cost function, mapping bidding strategies to value and cost…

Computer Science and Game Theory · Computer Science 2025-02-27 Gagan Aggarwal , Anupam Gupta , Xizhi Tan , Mingfei Zhao

We propose a method for providing communication network infrastructure in autonomous multi-agent teams. In particular, we consider a set of communication agents that are placed alongside regular agents from the system in order to improve…

Optimization and Control · Mathematics 2023-09-26 Ignacio Boero , Igor Spasojevic , Mariana del Castillo , George Pappas , Vijay Kumar , Alejandro Ribeiro

This paper studies four trading algorithms of a professional trader at a multilateral trading facility, observing a realistic two-sided limit order book whose dynamics are driven by the order book events. The identity of the trader can be…

Trading and Market Microstructure · Quantitative Finance 2015-01-13 Qinghua Li

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

In an incomplete market setting, we consider two financial agents, who wish to price and trade a non-replicable contingent claim. Assuming that the agents are utility maximizers, we propose a transaction price which is a result of the…

Computational Finance · Quantitative Finance 2012-02-22 Michail Anthropelos , Nikolaos E. Frangos , Stylianos Z. Xanthopoulos , Athanasios N. Yannacopoulos

Posted price mechanisms are prevalent in allocating goods within online marketplaces due to their simplicity and practical efficiency. We explore a fundamental scenario where buyers' valuations are independent and identically distributed,…

Computer Science and Game Theory · Computer Science 2025-05-26 José Correa , Vasilis Livanos , Dana Pizarro , Victor Verdugo