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We prove the existence of an equilibrium in a model with transaction costs and price impact where two agents are incentivized to trade towards a target. The two types of frictions -- price impact and transaction costs -- lead the agents to…

Mathematical Finance · Quantitative Finance 2020-02-20 Eunjung Noh , Kim Weston

Examining the behavior of multi-agent systems is vitally important to many emerging distributed applications - game theory has emerged as a powerful tool set in which to do so. The main approach of game-theoretic techniques is to model…

Computer Science and Game Theory · Computer Science 2024-06-03 Rohit Konda , Rahul Chandan , Jason Marden

We study the perfect information Nash equilibrium between a broker and her clients -- an informed trader and an uniformed trader. In our model, the broker trades in the lit exchange where trades have instantaneous and transient price impact…

Trading and Market Microstructure · Quantitative Finance 2025-07-23 Álvaro Cartea , Sebastian Jaimungal , Leandro Sánchez-Betancourt

We study a mean field game problem arising from the production control for multiple firms with price stickiness in the commodity market. The price dynamics for each firm is described as a (controlled) jump-diffusion process with mean-field…

Optimization and Control · Mathematics 2022-04-08 Chunmei Jiang , Tongqing Li , Jie Yu

As autonomous AI agents increasingly mediate online platform markets, a fundamental question emerges: do these markets generate stable strategic outcomes? In repeated strategic environments, the Nash equilibrium provides a natural benchmark…

Artificial Intelligence · Computer Science 2026-04-28 Enoch Hyunwook Kang

The paper studies an oligopolistic equilibrium model of financial agents who aim to share their random endowments. The risk-sharing securities and their prices are endogenously determined as the outcome of a strategic game played among all…

General Finance · Quantitative Finance 2016-05-18 Michail Anthropelos

This paper studies the equilibrium price of an asset that is traded in continuous time between N agents who have heterogeneous beliefs about the state process underlying the asset's payoff. We propose a tractable model where agents maximize…

Mathematical Finance · Quantitative Finance 2020-03-26 Johannes Muhle-Karbe , Marcel Nutz , Xiaowei Tan

Financial firms and institutional investors are routinely evaluated based on their performance relative to their peers. These relative performance concerns significantly influence risk-taking behavior and market dynamics. While the…

Mathematical Finance · Quantitative Finance 2025-12-29 Masaaki Fujii

We extend to the multi-asset case the framework of a discrete time model of a single asset financial market developed in Ghoulmie et al (2005). In particular, we focus on adaptive agents with threshold behavior allocating their resources…

Trading and Market Microstructure · Quantitative Finance 2009-11-13 F. Ghoulmié , M. Bartolozzi , C. P. Mellen , T. Di Matteo

Motivated by recent empirical findings on the periodic phenomenon of aggregated market volumes in equity markets, we aim to understand the causes and consequences of periodic trading activities through a game-theoretic perspective,…

Mathematical Finance · Quantitative Finance 2024-08-20 Yufan Chen , Lan Wu , Renyuan Xu , Ruixun Zhang

We explore stability and fairness considerations in decentralized networked markets with bilateral contracts, building on the trading networks framework [Hatfield et al., 2013]. In our trading network game, we show that a well-defined…

Theoretical Economics · Economics 2026-02-25 Simon Finster , Paul W. Goldberg , Edwin Lock , Matilde Tullii

The control of large-scale, multi-agent systems often entails distributing decision-making across the system components. However, with advances in communication and computation technologies, we can consider new collaborative decision-making…

Computer Science and Game Theory · Computer Science 2024-07-04 Bryce L. Ferguson , Dario Paccagnan , Bary S. R. Pradelski , Jason R. Marden

This paper studies the problem of Nash equilibrium approximation in large-scale heterogeneous mean-field games under communication and computation constraints. A deterministic mean-field game is considered in which the non-linear utility…

Optimization and Control · Mathematics 2017-09-20 Ehsan Nekouei , Tansu Alpcan , Girish Nair

Market confidence is essential for successful investing. By incorporating multi-market into the evolutionary minority game, we investigate the effects of investor beliefs on the evolution of collective behaviors and asset prices. When there…

Trading and Market Microstructure · Quantitative Finance 2015-06-18 Li-Xin Zhong , Wen-Juan Xu , Ping Huang , Chen-Yang Zhong , Tian Qiu

We investigate stochastic utility maximization games under relative performance concerns in both finite-agent and infinite-agent (graphon) settings. An incomplete market model is considered where agents with power (CRRA) utility functions…

Optimization and Control · Mathematics 2024-12-05 Zongxia Liang , Keyu Zhang , Yaqi Zhuang

We study interactions with uncertainty about demand sensitivity. In our solution concept (1) firms choose seemingly-optimal strategies given the level of sophistication of their data analytics, and (2) the levels of sophistication form best…

Theoretical Economics · Economics 2021-04-06 Ron Berman , Yuval Heller

We consider seeking a Nash equilibrium (NE) of a monotone game, played by dynamic agents which are modeled as a class of lower-triangular nonlinear uncertain dynamics with external disturbances. We establish a general framework that…

Optimization and Control · Mathematics 2025-11-04 Weijian Li , Yutao Tang

We study discrete-time, finite-state mean-field games (MFGs) under model uncertainty, where agents face ambiguity about the state transition probabilities. Each agent maximizes its expected payoff against the worst-case transitions within…

Optimization and Control · Mathematics 2026-01-21 Zongxia Liang , Zhou Zhou , Yaqi Zhuang , Bin Zou

Multiagent learning is a necessary yet challenging problem as multiagent systems become more prevalent and environments become more dynamic. Much of the groundbreaking work in this area draws on notable results from game theory, in…

Multiagent Systems · Computer Science 2011-07-04 M. Bowling , M. Veloso

In the study of reactive systems, qualitative properties are usually easier to model and analyze than quantitative properties. This is especially true in systems where mutually beneficial cooperation between agents is possible, such as…

Computer Science and Game Theory · Computer Science 2023-05-18 Senthil Rajasekaran , Suguman Bansal , Moshe Y. Vardi