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Related papers: How to Sell Hard Information

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How can we learn a classifier that is "fair" for a protected or sensitive group, when we do not know if the input to the classifier belongs to the protected group? How can we train such a classifier when data on the protected group is…

Machine Learning · Computer Science 2017-07-10 Alex Beutel , Jilin Chen , Zhe Zhao , Ed H. Chi

A seller offers a buyer a schedule of transfers and associated product qualities. After observing this schedule, the buyer chooses a flexible costly signal about his type. We show it is without loss to focus on a class of mechanisms that…

Theoretical Economics · Economics 2025-02-20 Jeffrey Mensch , Doron Ravid

We study a single-buyer pricing problem with unreliable side information, motivated by the increasing use of AI-assisted decision-making and LLM-based predictions. The seller observes a private sample that may be either accurate (coinciding…

Computer Science and Game Theory · Computer Science 2026-04-06 Zhihao Gavin Tang , Yixin Tao , Shixin Wang

A seller investigates a buyer before setting prices, balancing the cost of acquiring information against the gain from tailoring the contract to the buyer's private type. The optimal signal is coarse: no matter how rich the type space, the…

Theoretical Economics · Economics 2026-04-07 Rui Sun , Yi Zhang

This paper studies the equilibrium pricing of asset shares in the presence of dynamic private information. The market consists of a risk-neutral informed agent who observes the firm value, noise traders, and competitive market makers who…

Mathematical Finance · Quantitative Finance 2016-07-04 Albina Danilova

Modern ad auctions allow advertisers to target more specific segments of the user population. Unfortunately, this is not always in the best interest of the ad platform. In this paper, we examine the following basic question in the context…

Computer Science and Game Theory · Computer Science 2019-07-16 Ashwinkumar Badanidiyuru , Kshipra Bhawalkar , Haifeng Xu

We study a multi-agent setting in which brokers transact with an informed trader. Through a sequential Stackelberg-type game, brokers manage trading costs and adverse selection with an informed trader. In particular, supplying liquidity to…

Trading and Market Microstructure · Quantitative Finance 2025-11-13 Ryan Donnelly , Zi Li

I examine the value of information from sell-side analysts by analyzing a large corpus of their written reports. Using embeddings from state-of-the-art large language models, I show that qualitative information in analyst reports explains…

General Finance · Quantitative Finance 2025-06-18 Linying Lv

Statistical arbitrage exploits temporal price differences between similar assets. We develop a unifying conceptual framework for statistical arbitrage and a novel data driven solution. First, we construct arbitrage portfolios of similar…

Machine Learning · Computer Science 2022-10-11 Jorge Guijarro-Ordonez , Markus Pelger , Greg Zanotti

There has been much recent work on the revenue-raising properties of truthful mechanisms for selling goods to selfish bidders. Typically the revenue of a mechanism is compared against a benchmark (such as, the maximum revenue obtainable by…

Computer Science and Game Theory · Computer Science 2013-01-14 Paul W. Goldberg , Carmine Ventre

We study prior-independent pricing for selling a single item to a single buyer when the seller observes only a single sample from the valuation distribution, while the buyer knows the distribution. Classical robust pricing approaches either…

Computer Science and Game Theory · Computer Science 2026-02-23 Zhihao Gavin Tang , Yixin Tao , Shixin Wang

The robust option pricing problem is to find upper and lower bounds on fair prices of financial claims using only the most minimal assumptions. It contrasts with the classical, model-based approach and gained prominence in the wake of the…

Mathematical Finance · Quantitative Finance 2023-12-15 Alexander M. G. Cox , Annemarie M. Grass

Advances in information technology reduce barriers to information propagation, but at the same time they also induce the information overload problem. For the making of various decisions, mere digestion of the relevant information has…

Disordered Systems and Neural Networks · Physics 2009-11-11 Yi-Kuo Yu , Yi-Cheng Zhang , Paolo Laureti , Lionel Moret

We suggest that one individual holds multiple degrees of belief about an outcome, given the evidence. We then investigate the implications of such noisy probabilities for a buyer and a seller of binary options and find the odds agreed upon…

Theoretical Economics · Economics 2018-12-03 Ulrik W. Nash

We study a market for private data in which a data analyst publicly releases a statistic over a database of private information. Individuals that own the data incur a cost for their loss of privacy proportional to the differential privacy…

Computer Science and Game Theory · Computer Science 2012-10-01 Pranav Dandekar , Nadia Fawaz , Stratis Ioannidis

A corporate bond trader in a typical sell side institution such as a bank provides liquidity to the market participants by buying/selling securities and maintaining an inventory. Upon receiving a request for a buy/sell price quote (RFQ),…

Computational Finance · Quantitative Finance 2024-06-21 Samuel Atkins , Ali Fathi , Sammy Assefa

A multi-product monopolist faces a buyer who is privately informed about his valuations for the goods. As is well-known, optimal mechanisms are in general complicated, while simple mechanisms -- such as pure bundling or separate sales --…

Theoretical Economics · Economics 2025-09-03 Mira Frick , Ryota Iijima , Yuhta Ishii

We study a crowdsourcing problem where the platform aims to incentivize distributed workers to provide high quality and truthful solutions without the ability to verify the solutions. While most prior work assumes that the platform and…

Computer Science and Game Theory · Computer Science 2021-04-12 Chao Huang , Haoran Yu , Jianwei Huang , Randall A. Berry

We study the implications of selling through a voice-based virtual assistant (VA). The seller has a set of products available and the VA decides which product to offer and at what price, seeking to maximize its revenue, consumer- or…

Theoretical Economics · Economics 2020-09-09 Wenjia Ba , Haim Mendelson , Mingxi Zhu

The plethora of comparison shopping agents (CSAs) in today's markets enables buyers to query more than a single CSA when shopping, and an inter-CSAs competition naturally arises. We suggest a new approach, termed "selective price…

Computer Science and Game Theory · Computer Science 2016-11-08 Chen Hajaj , Noam Hazon , David Sarne