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We study the problem of a planner who resolves risk-return trade-offs - like financial investment decisions - on behalf of a collective of agents with heterogeneous risk preferences. The planner's objective is a two-stage utility functional…

General Finance · Quantitative Finance 2021-06-25 Anne G. Balter , Nikolaus Schweizer

Agent-based Models (ABMs) are valuable tools for policy analysis. ABMs help analysts explore the emergent consequences of policy interventions in multi-agent decision-making settings. But the validity of inferences drawn from ABM…

Machine Learning · Computer Science 2020-11-09 Osonde A. Osoba , Raffaele Vardavas , Justin Grana , Rushil Zutshi , Amber Jaycocks

This paper explores the utility of agent-based simulations in realistically modelling market structures and sheds light on the nuances of optimal dealer strategies. It underscores the contrast between conclusions drawn from probabilistic…

Trading and Market Microstructure · Quantitative Finance 2023-12-12 Wladimir Ostrovsky

We consider budget feasible mechanisms for procurement auctions with additive valuation functions. For the divisible case, where agents can be allocated fractionally, there exists an optimal mechanism with approximation guarantee $e/(e-1)$…

Computer Science and Game Theory · Computer Science 2022-09-02 Sophie Klumper , Guido Schäfer

Agent-Based Models (ABM) are computational scenario-generators, which can be used to predict the possible future outcomes of the complex system they represent. To better understand the robustness of these predictions, it is necessary to…

General Economics · Economics 2022-08-08 Karl Naumann-Woleske , Max Sina Knicker , Michael Benzaquen , Jean-Philippe Bouchaud

We initiate the study of mechanism design with outliers, where the designer can discard $z$ agents from the social cost objective. This setting is particularly relevant when some agents exhibit extreme or atypical preferences. As a natural…

Computer Science and Game Theory · Computer Science 2025-09-19 Argyrios Deligkas , Eduard Eiben , Sophie Klumper , Guido Schäfer , Artem Tsikiridis

Traditional models of rational action treat the agent as though it is cleanly separated from its environment, and can act on that environment from the outside. Such agents have a known functional relationship with their environment, can…

Artificial Intelligence · Computer Science 2020-10-08 Abram Demski , Scott Garrabrant

Agent based modelling is a simulation method in which autonomous agents interact with their environment and one another, given a predefined set of rules. It is an integral method for modelling and simulating complex systems, such as…

Multiagent Systems · Computer Science 2022-01-10 George Datseris , Ali R. Vahdati , Timothy C. DuBois

We propose a variant of Alternating-time Temporal Logic (ATL) grounded in the agents' operational know-how, as defined by their libraries of abstract plans. Inspired by ATLES, a variant itself of ATL, it is possible in our logic to…

Artificial Intelligence · Computer Science 2016-07-05 Nitin Yadav , Sebastian Sardina

Agent-based modeling is a computational dynamic modeling technique that may be less familiar to some readers. Agent-based modeling seeks to understand the behaviour of complex systems by situating agents in an environment and studying the…

Multiagent Systems · Computer Science 2023-04-19 G. Wade McDonald , Nathaniel D. Osgood

Reformulating nonlinear optimization problems into solver-ready linear optimization problems is often necessary for practical applications, but the process is often manual and requires domain expertise. We propose LinearizeLLM, an…

Machine Learning · Computer Science 2026-02-03 Paul-Niklas Ken Kandora , Simon Caspar Zeller , Aaron Jeremias Elsing , Elena Kuss , Steffen Rebennack

We consider multi-agent systems with general information networks where an agent may only observe a subset of other agents. A system designer assigns local utility functions to the agents guiding their actions towards an outcome which…

Computer Science and Game Theory · Computer Science 2025-01-30 Vartika Singh , Will Wesley , Philip N. Brown

This paper considers a network of collaborating agents for local resource allocation subject to nonlinear model constraints. In many applications, it is required (or desirable) that the solution be anytime feasible in terms of satisfying…

In transportation system demand modeling and simulation, agent-based models and microsimulations are current state-of-the-art approaches. However, existing agent-based models still have some limitations on behavioral realism and resource…

Artificial Intelligence · Computer Science 2025-04-08 Tianming Liu , Jirong Yang , Yafeng Yin

We study principal-agent problems in which a principal commits to an outcome-dependent payment scheme (a.k.a. contract) so as to induce an agent to take a costly, unobservable action. We relax the assumption that the principal perfectly…

Computer Science and Game Theory · Computer Science 2021-06-02 Matteo Castiglioni , Alberto Marchesi , Nicola Gatti

Economies and societal structures in general are complex stochastic systems which may not lend themselves well to algebraic analysis. An addition of subjective value criteria to the mechanics of interacting agents will further complicate…

General Finance · Quantitative Finance 2018-12-07 Dmitriy Volinskiy , Lana Cuthbertson , Omid Ardakanian

We propose a set of conservative models in which agents exchange wealth with a preference in the choice of interacting agents in different ways. The common feature in all the models is that the temporary values of financial status of agents…

Physics and Society · Physics 2015-06-22 Sanchari Goswami , Parongama Sen

We present a detailed study of the statistical properties of an Agent Based Model and of its generalization to the multiplicative dynamics. The aim of the model is to consider the minimal elements for the understanding of the origin of the…

Trading and Market Microstructure · Quantitative Finance 2009-11-13 V. Alfi , M. Cristelli , L. Pietronero , A. Zaccaria

Cellular Agent-Based Models are commonly employed to describe a variety biological systems. Over the course of the past years, many modeling tools have emerged which solve particular research questions. In this short opinion piece, we argue…

Cell Behavior · Quantitative Biology 2025-11-18 Jonas Pleyer

We study mechanism design when agents may have hidden secondary goals which will manifest as non-trivial preferences among outcomes for which their primary utility is the same. We show that in such cases, a mechanism is robust against…

Computer Science and Game Theory · Computer Science 2023-07-25 Renato Paes Leme , Jon Schneider , Hanrui Zhang
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