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This paper examines replication portfolio construction in incomplete markets - a key problem in financial engineering with applications in pricing, hedging, balance sheet management, and energy storage planning. We model this as a…

Machine Learning · Statistics 2025-12-09 Matteo Maggiolo , Giuseppe Nuti , Miroslav Štrupl , Oleg Szehr

We propose a method to design a decentralized energy market which guarantees individual rationality (IR) in expectation, in the presence of system-level grid constraints. We formulate the market as a welfare maximization problem subject to…

Computational Engineering, Finance, and Science · Computer Science 2018-07-23 Lorenzo Nespoli , Matteo Salani , Vasco Medici

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

We study the propensity of independent algorithms to collude in repeated Cournot duopoly games. Specifically, we investigate the predictive power of different oligopoly and bargaining solutions regarding the effect of asymmetry between…

General Economics · Economics 2025-01-14 Simon Martin , Hans-Theo Normann , Paul Püplichhuisen , Tobias Werner

We focus on the one-to-one two-sided matching model with two disjoint sets of agents of equal size, where each agent in a set has preferences on the agents in the other set modeled by a linear order. A matching mechanism associates a set of…

Theoretical Economics · Economics 2024-11-27 Daniela Bubboloni , Michele Gori , Claudia Meo

In this paper, we consider a network of consumers who are under the combined influence of their neighbors and external influencing entities (the marketers). The consumers' opinion follows a hybrid dynamics whose opinion jumps are due to the…

Theoretical Economics · Economics 2020-11-19 Vineeth S. Varma , Samson Lasaulce , Julien Mounthanyvong , Irinel-Constantin Morarescu

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

A major goal in Algorithmic Game Theory is to justify equilibrium concepts from an algorithmic and complexity perspective. One appealing approach is to identify natural distributed algorithms that converge quickly to an equilibrium. This…

Computer Science and Game Theory · Computer Science 2018-06-14 Yun Kuen Cheung , Richard Cole , Yixin Tao

We consider a two-sided matching problem in which the agents on one side have dichotomous preferences and the other side representing institutions has strict preferences (priorities). It captures several important applications in matching…

Computer Science and Game Theory · Computer Science 2025-02-17 Haris Aziz , Md. Shahidul Islam , Szilvia Pápai

Federated learning enables training on a massive number of edge devices. To improve flexibility and scalability, we propose a new asynchronous federated optimization algorithm. We prove that the proposed approach has near-linear convergence…

Distributed, Parallel, and Cluster Computing · Computer Science 2020-12-08 Cong Xie , Sanmi Koyejo , Indranil Gupta

In this paper, we present a new model and two mechanisms for auctions in two-sided markets of buyers and sellers, where budget constraints are imposed on buyers. Our model incorporates polymatroidal environments, and is applicable to a wide…

Computer Science and Game Theory · Computer Science 2018-09-17 Hiroshi Hirai , Ryosuke Sato

We consider two sided matching markets consisting of agents with non-transferable utilities; agents from the opposite sides form matching pairs (e.g., buyers-sellers) and negotiate the terms of their math which may include a monetary…

Computer Science and Game Theory · Computer Science 2012-12-05 Saeed Alaei , Kamal Jain , Azarakhsh Malekian

Stochastic matching is the stochastic version of the well-known matching problem, which consists in maximizing the rewards of a matching under a set of probability distributions associated with the nodes and edges. In most stochastic…

Optimization and Control · Mathematics 2024-05-01 Yuya Hikima , Yasunori Akagi , Hideaki Kim

For a broad class of models widely used in practice for choice and ranking data based on Luce's choice axiom, including the Bradley--Terry--Luce and Plackett--Luce models, we show that the associated maximum likelihood estimation problems…

Optimization and Control · Mathematics 2025-04-08 Zhaonan Qu , Alfred Galichon , Wenzhi Gao , Johan Ugander

We consider a distributed user association problem in the downlink of a small cell network, where small cells obtain the required energy for providing wireless services to users through ambient energy harvesting. Since energy harvesting is…

Computer Science and Game Theory · Computer Science 2017-06-27 Setareh Maghsudi , Ekram Hossain

Much work has been done on the computation of market equilibria. However due to strategic play by buyers, it is not clear whether these are actually observed in the market. Motivated by the observation that a buyer may derive a better…

Computer Science and Game Theory · Computer Science 2015-05-18 Bharat Adsul , Ch. Sobhan Babu , Jugal Garg , Ruta Mehta , Milind Sohoni

We show that the BIMATRIX game does not have a fully polynomial-time approximation scheme, unless PPAD is in P. In other words, no algorithm with time polynomial in n and 1/\epsilon can compute an \epsilon-approximate Nash equilibrium of an…

Computational Complexity · Computer Science 2007-05-23 Xi Chen , Xiaotie Deng , Shang-Hua Teng

We study the allocation of divisible goods to competing agents via a market mechanism, focusing on agents with Leontief utilities. The majority of the economics and mechanism design literature has focused on \emph{linear} prices, meaning…

Computer Science and Game Theory · Computer Science 2019-12-24 Ashish Goel , Reyna Hulett , Benjamin Plaut

This paper studies equilibrium quality of semi-separable position auctions (known as the Ad Types setting) with greedy or optimal allocation combined with generalized second-price (GSP) or Vickrey-Clarke-Groves (VCG) pricing. We make three…

Computer Science and Game Theory · Computer Science 2021-03-11 Hadi Elzayn , Riccardo Colini-Baldeschi , Brian Lan , Okke Schrijvers

The Adjusted Winner procedure is an important fair division mechanism proposed by Brams and Taylor for allocating goods between two parties. It has been used in practice for divorce settlements and analyzing political disputes. Assuming…

Computer Science and Game Theory · Computer Science 2017-03-01 Haris Aziz , Simina Brânzei , Aris Filos-Ratsikas , Søren Kristoffer Stiil Frederiksen
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