Related papers: Does an artificial intelligence perform market man…
We present a simple order book mechanism that regulates an artificial financial market with self-organized criticality dynamics and fat tails of returns distribution. The model shows the role played by individual imitation in determining…
In real time electricity markets, the objective of generation companies while bidding is to maximize their profit. The strategies for learning optimal bidding have been formulated through game theoretical approaches and stochastic…
Gene Regulatory Networks are networks of interactions in biological organisms responsible for determining the production levels of proteins and peptides. Proteins are workers of a cell factory, and their production defines the goal of a…
Artificial Intelligence (AI) achieved super-human performance in a broad variety of domains. We say that an AI is made Artificially Stupid on a task when some limitations are deliberately introduced to match a human's ability to do the…
Classification algorithms based on Artificial Intelligence (AI) are nowadays applied in high-stakes decisions in finance, healthcare, criminal justice, or education. Individuals can strategically adapt to the information gathered about…
Global coordination is required to solve a wide variety of challenging collective action problems from network colorings to the tragedy of the commons. Recent empirical study shows that the presence of a few noisy autonomous agents can…
This research explores how human-defined goals influence the behavior of Large Language Models (LLMs) through purpose-conditioned cognition. Using financial prediction tasks, we show that revealing the downstream use (e.g., predicting stock…
The appreciation and utilisation of risk and uncertainty can play a key role in helping to solve some of the many ethical issues that are posed by AI. Understanding the uncertainties can allow algorithms to make better decisions by…
This article explores the optimisation of trading strategies in Constant Function Market Makers (CFMMs) and centralised exchanges. We develop a model that accounts for the interaction between these two markets, estimating the conditional…
Using the example of the film 2001: A Space Odyssey, this chapter illustrates the challenges posed by an AI capable of making decisions that go against human interests. But are human decisions always rational and ethical? In reality, the…
It is widely assumed that increases in economic productivity necessarily lead to economic growth. In this paper, it is shown that this is not always the case. An idealized model of an economy is presented in which a new technology allows…
The development and regulation of multi-purpose, large "foundation models" of AI seems to have reached a critical stage, with major investments and new applications announced every other day. Some experts are calling for a moratorium on the…
One of the most important aims of the fields of robotics, artificial intelligence and artificial life is the design and construction of systems and machines as versatile and as reliable as living organisms at performing high level…
Autonomous Artificial Intelligence (AI) has many benefits. It also has many risks. In this work, we identify the 3 levels of autonomous AI. We are of the position that AI must not be fully autonomous because of the many risks, especially as…
We explore the striking mathematical connections that exist between market scoring rules, cost function based prediction markets, and no-regret learning. We show that any cost function based prediction market can be interpreted as an…
The dynamics of financial markets are driven by the interactions between participants, as well as the trading mechanisms and regulatory frameworks that govern these interactions. Decision-makers would rather not ignore the impact of other…
Artificial Intelligence (AI) is increasingly becoming a trusted advisor in people's lives. A new concern arises if AI persuades people to break ethical rules for profit. Employing a large-scale behavioural experiment (N = 1,572), we test…
Various forms of implications of artificial intelligence that either exacerbate or decrease racial systemic injustice have been explored in this applied research endeavor. Taking each thematic area of identifying, analyzing, and debating an…
Statistical mechanics provides a useful analog for understanding the behavior of complex adaptive systems, including electric power markets and the power systems they intend to govern. Market-based control is founded on the conjecture that…
In today's world, with the rise of numerous social platforms, it has become relatively easy for anyone to spread false information and lure people into traps. Fraudulent schemes and traps are growing rapidly in the investment world. Due to…