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We show that under mild assumptions, the total value of information to informed traders in the market can be measured by the covariance between price changes and order flow. This covariance captures noise trader losses, which equal informed…

General Finance · Quantitative Finance 2026-05-13 Ohad Kadan , Asaf Manela

We investigate the algorithmic problem of selling information to agents who face a decision-making problem under uncertainty. We adopt the model recently proposed by Bergemann et al. [BBS18], in which information is revealed through…

Computer Science and Game Theory · Computer Science 2020-12-24 Yang Cai , Grigoris Velegkas

We consider the problem of maximizing revenue when selling k items to a single buyer with known valuation distributions. We show that for a single, additive buyer whose valuations for for the items are distributed according to i.i.d.…

Computer Science and Game Theory · Computer Science 2016-11-30 Ron Kupfer

Strategic classification studies the interaction between a classification rule and the strategic agents it governs. Under the assumption that the classifier is known, rational agents respond to it by manipulating their features. However, in…

Machine Learning · Computer Science 2021-06-15 Ganesh Ghalme , Vineet Nair , Itay Eilat , Inbal Talgam-Cohen , Nir Rosenfeld

Problem definition: Traditional monopoly pricing assumes sellers have full information about consumer valuations. We consider monopoly pricing under limited information, where a seller only knows the mean, variance and support of the…

Optimization and Control · Mathematics 2026-03-30 Tim S. G. van Eck , Pieter Kleer , Johan S. H. van Leeuwaarden

Motivated by the emergence of popular service-based two-sided markets where sellers can serve multiple buyers at the same time, we formulate and study the {\em two-sided cost sharing} problem. In two-sided cost sharing, sellers incur…

Computer Science and Game Theory · Computer Science 2021-07-14 Sreenivas Gollapudi , Kostas Kollias , Ali Shameli

In many areas of industry and society, e.g., energy, healthcare, logistics, agents collect vast amounts of data that they deem proprietary. These data owners extract predictive information of varying quality and relevance from data…

Theoretical Economics · Economics 2022-10-07 Aitazaz Ali Raja , Pierre Pinson , Jalal Kazempour , Sergio Grammatico

We consider the problem of maximizing portfolio value when an agent has a subjective view on asset value which differs from the traded market price. The agent's trades will have a price impact which affect the price at which the asset is…

Mathematical Finance · Quantitative Finance 2020-10-13 Ryan Donnelly , Matthew Lorig

A monopoly platform sells either a risky product (with unknown utility) or a safe product (with known utility) to agents who sequentially arrive and learn the utility of the risky product by the reporting of previous agents. It is costly…

Theoretical Economics · Economics 2023-12-12 Kaiwei Zhang , Xi Weng , Xienan Cheng

We consider a robust version of the revenue maximization problem, where a single seller wishes to sell $n$ items to a single unit-demand buyer. In this robust version, the seller knows the buyer's marginal value distribution for each item…

Computer Science and Game Theory · Computer Science 2020-08-27 Moshe Babaioff , Michal Feldman , Yannai A. Gonczarowski , Brendan Lucier , Inbal Talgam-Cohen

In social learning environments, agents acquire information from both private signals and the observed actions of predecessors, referred to as history. We define the value of history as the gain in expected payoff from accessing both the…

Theoretical Economics · Economics 2025-07-16 Hiroto Sato , Konan Shimizu

We investigate asymmetry of information in the context of robust approach to pricing and hedging of financial derivatives. We consider two agents, one who only observes the stock prices and another with some additional information, and…

Mathematical Finance · Quantitative Finance 2018-04-02 Anna Aksamit , Zhaoxu Hou , Jan Obłój

High-stakes auctions are often preceded by nonbinding communication between bidders and the seller. Motivated by these practices, this paper examines a two-period model in which two bidders send private cheap talk messages to the seller…

Theoretical Economics · Economics 2026-03-19 Eric Yan

We study scenarios where multiple sellers of a homogeneous good compete on prices, where each seller can only sell to some subset of the buyers. Crucially, sellers cannot price-discriminate between buyers. We model the structure of the…

Computer Science and Game Theory · Computer Science 2013-11-12 Moshe Babaioff , Brendan Lucier , Noam Nisan

We present results on simulations of a stock market with heterogeneous, cumulative information setup. We find a non-monotonic behaviour of traders' returns as a function of their information level. Particularly, the average informed agents…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Bence Toth , Enrico Scalas

We study a data marketplace where a broker intermediates between buyers, who seek to estimate the mean \(\mu\) of an unknown normal distribution \(\Ncal(\mu, \sigma^2)\), and contributors, who can collect data from this distribution at a…

Computer Science and Game Theory · Computer Science 2026-04-03 Keran Chen , Alex Clinton , Kirthevasan Kandasamy

We revisit the distributed hypothesis testing (or hypothesis testing with communication constraints) problem from the viewpoint of privacy. Instead of observing the raw data directly, the transmitter observes a sanitized or randomized…

Information Theory · Computer Science 2019-06-26 Atefeh Gilani , Selma Belhadj Amor , Sadaf Salehkalaibar , Vincent Y. F. Tan

We study the problem of multi-dimensional revenue maximization when selling $m$ items to a buyer that has additive valuations for them, drawn from a (possibly correlated) prior distribution. Unlike traditional Bayesian auction design, we…

Computer Science and Game Theory · Computer Science 2022-04-29 Yiannis Giannakopoulos , Diogo Poças , Alexandros Tsigonias-Dimitriadis

We consider the practical and classical setting where the seller is using an exploration stage to learn the value distributions of the bidders before running a revenue-maximizing auction in a exploitation phase. In this two-stage process,…

Computer Science and Game Theory · Computer Science 2019-05-31 Clément Calauzènes , Thomas Nedelec , Vianney Perchet , Noureddine El Karoui

In this work we study the problem of inferring a discrete probability distribution using both expert knowledge and empirical data. This is an important issue for many applications where the scarcity of data prevents a purely empirical…

Machine Learning · Computer Science 2020-01-08 Rémi Besson , Erwan Le Pennec , Stéphanie Allassonnière