Related papers: Core equivalence with large agents
We introduce a new microeconomics foundation of a specific type of competitive market equilibrium that can be used to study several markets with information asymmetry such as commodity market, credit market, and insurance market.
We propose a pseudo-market solution to resource allocation problems subject to constraints. Our treatment of constraints is general: including bihierarchical constraints due to considerations of diversity in school choice, or scheduling in…
We prove the existence of a competitive equilibrium in a production economy with infinitely many commodities and a measure space of agents whose preferences are price dependent. We employ a saturated measure space for the set of agents and…
Quantum resources lie at the core of quantum computation as they are responsible for the computational advantage in many tasks. The complementary relations are a pathway to understanding how the physical quantities are related. Here it was…
This paper studies contracting in the presence of externalities with a non-contractible outsider. Multiple equilibria arise from strategic symmetry between the insider agent and the outsider. To address strategic uncertainty, the principal…
We study competitive equilibrium in the canonical Fisher market model, but with indivisible goods. In this model, every agent has a budget of artificial currency with which to purchase bundles of goods. Equilibrium prices match between…
Aligning AI systems with human values remains a fundamental challenge, but does our inability to create perfectly aligned models preclude obtaining the benefits of alignment? We study a strategic setting where a human user interacts with…
We argue that a complete characterisation of quantum correlations in bipartite systems of many dimensions may require a quantity which, even for pure states, does not reduce to a single number. Subsequently, we introduce multi-dimensional…
We study risk-sharing economies where heterogenous agents trade subject to quadratic transaction costs. The corresponding equilibrium asset prices and trading strategies are characterised by a system of nonlinear, fully-coupled…
We introduce a framework to study the effective objectives at different time scales of financial market microstructure. The financial market can be regarded as a complex adaptive system, where purposeful agents collectively and…
In a setting where heterogeneous agents interact to accomplish a given set of goals, cooperation is of utmost importance, especially when agents cannot achieve their individual goals by exclusive use of their own efforts. Even when we…
Previous work on the competitive retrieval setting focused on a single-query setting: document authors manipulate their documents so as to improve their future ranking for a given query. We study a competitive setting where authors opt to…
I characterize optimal government policy in a sticky-price economy with different types of consumers and endogenous financial constraints in the banking and entrepreneurial sectors. The competitive equilibrium allocation is constrained…
We propose a simple model that describes the dynamics of efficiencies of competing agents. Agents communicate leading to increase of efficiencies of underachievers, and an efficiency of each agent can increase or decrease irrespectively of…
In this paper, we study the classic problem of fairly allocating indivisible items with the extra feature that the items lie on a line. Our goal is to find a fair allocation that is contiguous, meaning that the bundle of each agent forms a…
To successfully complete a complex project, be it a construction of an airport or of a backbone IT system, agents (companies or individuals) must form a team having required competences and resources. A team can be formed either by the…
Recent advances in reinforcement learning with social agents have allowed us to achieve human-level performance on some interaction tasks. However, most interactive scenarios do not have as end-goal performance alone; instead, the social…
This paper has two central aims: first, to provide simple conditions under which the generalized games in choice form and, consequently, the abstract economies, admit equilibrium; second, to study the solvability of several types of systems…
We study an economic model where agents trade a variety of products by using one of three competing rules: "need", "greed" and "noise". We find that the optimal strategy for any agent depends on both product composition in the overall…
Recent studies have found evidence of a negative association between economic complexity and inequality at the country level. Moreover, evidence suggests that sophisticated economies tend to outsource products that are less desirable (e.g.…