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We suggest that one individual holds multiple degrees of belief about an outcome, given the evidence. We then investigate the implications of such noisy probabilities for a buyer and a seller of binary options and find the odds agreed upon…

Theoretical Economics · Economics 2018-12-03 Ulrik W. Nash

Despite high-profile successes in the field of Artificial Intelligence, machine-driven technologies still suffer important limitations, particularly for complex tasks where creativity, planning, common sense, intuition, or learning from…

Auctions in which agents' payoffs are random variables have received increased attention in recent years. In particular, recent work in algorithmic mechanism design has produced mechanisms employing internal randomization, partly in…

Computer Science and Game Theory · Computer Science 2012-06-15 Shaddin Dughmi , Yuval Peres

We propose two solution concepts for matchings under preferences: robustness and near stability. The former strengthens while the latter relaxes the classic definition of stability by Gale and Shapley (1962). Informally speaking, robustness…

Computer Science and Game Theory · Computer Science 2019-06-06 Jiehua Chen , Piotr Skowron , Manuel Sorge

Motivated by electricity markets, this paper studies the impact of forward contracting in situations where firms have capacity constraints and heterogeneous production lead times. We consider a model with two types of firms - leaders and…

Optimization and Control · Mathematics 2016-06-29 Desmond Cai , Anish Agarwal , Adam Wierman

We present an experimental and simulated model of a multi-agent stock market driven by a double auction order matching mechanism. Studying the effect of cumulative information on the performance of traders, we find a non monotonic…

Physics and Society · Physics 2009-11-13 Bence Toth , Enrico Scalas , Juergen Huber , Michael Kirchler

Sequential fundraising in two sided online platforms enable peer to peer lending by sequentially bringing potential contributors, each of whose decisions impact other contributors in the market. However, understanding the dynamics of…

Machine Learning · Computer Science 2023-08-03 Soumajyoti Sarkar

This paper studies how a fixed flexibility budget should be allocated across the two sides of a balanced bipartite matching market. We model compatibilities via a sparse bipartite stochastic block model in which flexible agents are more…

Probability · Mathematics 2026-05-29 Taha Ameen , Flore Sentenac , Sophie H. Yu

As AI agents increasingly act on behalf of human stakeholders in economic settings, understanding their behavior in complex market environments becomes critical. This article examines how Large Language Models coordinate on markets that are…

General Economics · Economics 2026-03-11 Alexander Erlei , Lukas Meub

Many allocation problems in multiagent systems rely on agents specifying cardinal preferences. However, allocation mechanisms can be sensitive to small perturbations in cardinal preferences, thus causing agents who make ``small" or…

Computer Science and Game Theory · Computer Science 2021-07-13 Vijay Menon , Kate Larson

A model of Boolean agents competing in a market is presented where each agent bases his action on information obtained from a small group of other agents. The agents play a competitive game that rewards those in the minority. After a long…

Statistical Mechanics · Physics 2009-10-31 Maya Paczuski , Kevin E. Bassler , Alvaro Corral

RLHF-aligned LMs have shown unprecedented ability on both benchmarks and long-form text generation, yet they struggle with one foundational task: next-token prediction. As RLHF models become agent models aimed at interacting with humans,…

Computation and Language · Computer Science 2024-07-03 Margaret Li , Weijia Shi , Artidoro Pagnoni , Peter West , Ari Holtzman

The classic two-sided many-to-one job matching model assumes that firms treat workers as substitutes and workers ignore colleagues when choosing where to work. Relaxing these assumptions may lead to nonexistence of stable matchings.…

Theoretical Economics · Economics 2023-08-29 Ce Liu , Ziwei Wang , Hanzhe Zhang

Machine learning has grown in popularity to help assign resources and make decisions about users, which can result in discrimination. This includes hiring markets, where employers have increasingly been interested in using automated tools…

Computer Science and Game Theory · Computer Science 2024-12-20 Serafina Kamp , Benjamin Fish

We consider a many-to-one matching market where colleges share true preferences over students but make decisions using only independent noisy rankings. Each student has a true value $v$, but each college $c$ ranks the student according to…

Theoretical Economics · Economics 2024-02-27 Kenny Peng , Nikhil Garg

We study the distortion of one-sided and two-sided matching problems on the line. In the one-sided case, $n$ agents need to be matched to $n$ items, and each agent's cost in a matching is their distance from the item they were matched to.…

Computer Science and Game Theory · Computer Science 2025-02-04 Aris Filos-Ratsikas , Vasilis Gkatzelis , Mohamad Latifian , Emma Rewinski , Alexandros A. Voudouris

We investigate how asymmetric information affects equilibrium price formation in an economy with many interacting agents. Motivated by a finite-player model with two populations of asymmetrically informed agents, we study its mean-field…

Probability · Mathematics 2026-05-06 Alekos Cecchin , Markus Fischer , Claudio Fontana , Giacomo Lanaro

In many empirical studies of a large two-sided matching market (such as in a college admissions problem), the researcher performs statistical inference under the assumption that they observe a random sample from a large matching market. In…

Econometrics · Economics 2024-04-02 Jacob Schwartz , Kyungchul Song

Proper scoring rules elicit truth-telling when making predictions, or otherwise revealing information. However, when multiple predictions are made of the same event, telling the truth is in general no longer optimal, as agents are motivated…

Computer Science and Game Theory · Computer Science 2017-07-04 Amir Ban

The stable marriage problem and its extensions have been extensively studied, with much of the work in the literature assuming that agents fully know their own preferences over alternatives. This assumption however is not always practical…

Computer Science and Game Theory · Computer Science 2016-03-21 Baharak Rastegari , Paul Goldberg , David Manlove
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