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Identical products being sold at different prices in different locations is a common phenomenon. Price differences might occur due to various reasons such as shipping costs, trade restrictions and price discrimination. To model such…

Computer Science and Game Theory · Computer Science 2010-08-02 Sourav Chakraborty , Nikhil Devanur , Chinmay Karande

We study optimal risk sharing among $n$ agents endowed with distortion risk measures. Our model includes market frictions that can either represent linear transaction costs or risk premia charged by a clearing house for the agents. Risk…

Optimization and Control · Mathematics 2012-05-07 M. Ludkovski , V. R. Young

Many ethical issues in machine learning are connected to the training data. Online data markets are an important source of training data, facilitating both production and distribution. Recently, a trend has emerged of for-profit "ethical"…

Computer Science and Game Theory · Computer Science 2025-02-03 Augustin Chaintreau , Roland Maio , Juba Ziani

The rapid development and deployment of vehicle technologies offer opportunities to re-think the way traffic is managed. This paper capitalizes on vehicle connectivity and proposes an economic instrument and corresponding cooperative…

Systems and Control · Electrical Eng. & Systems 2022-08-02 DianChao Lin , Saif Eddin Jabari

We consider a trading marketplace that is populated by traders with diverse trading strategies and objectives. The marketplace allows the suppliers to list their goods and facilitates matching between buyers and sellers. In return, such a…

Computer Science and Game Theory · Computer Science 2022-10-03 Kshama Dwarakanath , Svitlana S Vyetrenko , Tucker Balch

We prove the existence of an equilibrium in a model with transaction costs and price impact where two agents are incentivized to trade towards a target. The two types of frictions -- price impact and transaction costs -- lead the agents to…

Mathematical Finance · Quantitative Finance 2020-02-20 Eunjung Noh , Kim Weston

Circular trading is a form of tax evasion in Goods and Services Tax where a group of fraudulent taxpayers (traders) aims to mask illegal transactions by superimposing several fictitious transactions (where no value is added to the goods or…

Machine Learning · Computer Science 2022-08-17 Priya Mehta , Sanat Bhargava , M. Ravi Kumar , K. Sandeep Kumar , Ch. Sobhan Babu

In many search markets, advance interim contracts include an explicit right to renege, granting one party the option to switch to more attractive matches that emerge later in the search process. This paper studies the design and welfare…

General Economics · Economics 2026-03-30 Richard Faltings

In a financial market with a continuous price process and proportional transaction costs we investigate the problem of utility maximization of terminal wealth. We give sufficient conditions for the existence of a shadow price process,…

Portfolio Management · Quantitative Finance 2015-05-06 Christoph Czichowsky , Walter Schachermayer , Junjian Yang

One reason for the popularity of Bitcoin is due to its anonymity. Although several heuristics have been used to break the anonymity, new approaches are proposed to enhance its anonymity at the same time. One of them is the mixing service.…

Cryptography and Security · Computer Science 2021-03-03 Lei Wu , Yufeng Hu , Yajin Zhou , Haoyu Wang , Xiaopu Luo , Zhi Wang , Fan Zhang , Kui Ren

We analyze the market quality of centralized crypto exchanges (CEXs) and decentralized blockchain-based venues (DEXs) using a unique and comprehensive dataset. Focusing on two fundamental aspects, transaction costs and deviations from the…

Trading and Market Microstructure · Quantitative Finance 2024-09-16 Andrea Barbon , Angelo Ranaldo

We consider the problem of utility maximization for small traders on incomplete financial markets. As opposed to most of the papers dealing with this subject, the investors' trading strategies we allow underly constraints described by…

Probability · Mathematics 2008-12-10 Ying Hu , Peter Imkeller , Matthias Muller

Cybercrime is continuously growing in numbers and becoming more sophisticated. Currently, there are various monetisation and money laundering methods, creating a huge, underground economy worldwide. A clear indicator of these activities is…

Cryptography and Security · Computer Science 2021-05-26 Nikolaos Lykousas , Vasilios Koutsokostas , Fran Casino , Constantinos Patsakis

In densely populated urban areas, where interactions between pedestrians, vehicles, and motorcycles are frequent and complex, traffic safety is a critical concern. This paper evaluates the Neighborhood Traffic Environment Improvement…

General Economics · Economics 2024-02-20 Frank Y. Huang , Po-Chun Huang

The Bitcoin Lightning Network (LN) is designed to improve the scalability of blockchain systems by using off-chain payment paths to settle transactions in a faster, cheaper, and more private manner. This work aims to empirically study LN's…

Computer Science and Game Theory · Computer Science 2023-12-29 Andrea Carotti , Cosimo Sguanci , Anastasios Sidiropoulos

The majority of online marketplaces offer promotion programs to sellers to acquire additional customers for their products. These programs typically allow sellers to allocate advertising budgets to promote their products, with higher…

Computer Science and Game Theory · Computer Science 2025-02-05 Anastasiia Soboleva , Alexander Ledovsky , Yuriy Dorn , Egor Samosvat , Andrey Tikhanov , Fyodor Prazdnikov

This paper is devoted to the important yet little explored subject of the market impact of limit orders. Our analysis is based on a proprietary database of metaorders - large orders that are split into smaller pieces before being sent to…

Trading and Market Microstructure · Quantitative Finance 2022-05-17 Emilio Said , Ahmed Bel Hadj Ayed , Alexandre Husson , Frédéric Abergel

This paper conducts an empirically study on the trade package composed of a sequence of consecutive purchases or sales of 23 stocks in Chinese stock market. We investigate the probability distributions of the execution time, the number of…

Trading and Market Microstructure · Quantitative Finance 2013-09-09 Fei Ren , Wei-Xing Zhou

This paper analizes the optimal level of transfer pricing manipulation when the expected tax penalty is a function of the tax enforcement and the market price parameter. The arm's length principle implies the existence of a range of…

Economics · Quantitative Finance 2015-08-18 Alex Augusto Timm Rathke

The asymmetric price impact between the institutional purchases and sales of 32 liquid stocks in Chinese stock markets in year 2003 is carefully studied. We analyze the price impact in both drawup and drawdown trends with consecutive…

Trading and Market Microstructure · Quantitative Finance 2015-05-30 Fei Ren , Li-Xin Zhong
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