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In a dynamic matching market, such as a marriage or job market, how should agents balance accepting a proposed match with the cost of continuing their search? We consider this problem in a discrete setting, in which agents have cardinal…

Computer Science and Game Theory · Computer Science 2021-06-16 Ishan Agarwal , Richard Cole , Yixin Tao

We study a continuous-time version of the intermediation model of Grossman and Miller (1988). To wit, we solve for the competitive equilibrium prices at which liquidity takers' demands are absorbed by dealers with quadratic inventory costs,…

Trading and Market Microstructure · Quantitative Finance 2021-03-03 Peter Bank , Ibrahim Ekren , Johannes Muhle-Karbe

The Hylland-Zeckhauser gave a classic pricing-based mechanism (HZ) for a one-sided matching market; it yields allocations satisfying Pareto optimality and envy-freeness (Hylland and Zeckhauser, 1979), and the mechanism is incentive…

Computer Science and Game Theory · Computer Science 2023-10-26 Thorben Tröbst , Vijay V Vazirani

In the context of energy market clearing, non-merchant assets are assets that do not submit bids but whose operational constraints are included. Integrating energy storage systems as non-merchant assets can maximize social welfare. However,…

Optimization and Control · Mathematics 2025-05-05 Eléa Prat , Jonas Bodulv Broge , Richard M. Lusby

A seller offers an asset in a decentralised market. Buyers have private signals about their common value. I study whether the market becomes allocatively more efficient with (i) more buyers, (ii) better-informed buyers. Both increase the…

Theoretical Economics · Economics 2025-08-04 D. Carlos Akkar

Considering the sequential clearing of energy and reserves in Europe, enabling inter-area reserve exchange requires optimally allocating inter-area transmission capacities between these two markets. To achieve this, we provide a…

Optimization and Control · Mathematics 2021-07-14 Orcun Karaca , Stefanos Delikaraoglou , Maryam Kamgarpour

A mediator is a well-known construct in game theory, and is an entity that plays on behalf of some of the agents who choose to use its services, while the rest of the agents participate in the game directly. We initiate a game theoretic…

Computer Science and Game Theory · Computer Science 2007-09-03 Sudhir Kumar Singh , Vwani P. Roychowdhury , Himawan Gunadhi , Behnam A. Rezaei

In this work, we aim to design a data marketplace; a robust real-time matching mechanism to efficiently buy and sell training data for Machine Learning tasks. While the monetization of data and pre-trained models is an essential focus of…

Computer Science and Game Theory · Computer Science 2019-05-14 Anish Agarwal , Munther Dahleh , Tuhin Sarkar

The growing share of proactive actors in the electricity markets calls for more attention on prosumers and more support for their decision-making under decentralized electricity markets. In view of the changing paradigm, it is crucial to…

Optimization and Control · Mathematics 2021-05-24 Ni Wang , Remco Verzijlbergh , Petra Heijnen , Paulien Herder

Sponsored search mechanisms have drawn much attention from both academic community and industry in recent years since the seminal papers of [13] and [14]. However, most of the existing literature concentrates on the mechanism design and…

Computer Science and Game Theory · Computer Science 2010-09-01 Jian Liu , Dah Ming Chiu

Advances in computational optimization allow for the organization of large combinatorial markets. We aim for allocations and competitive equilibrium prices, i.e. outcomes that are in the core. The research is motivated by the design of…

Computer Science and Game Theory · Computer Science 2018-07-24 Martin Bichler , Stefan Waldherr

Market makers provide liquidity to other market participants: they propose prices at which they stand ready to buy and sell a wide variety of assets. They face a complex optimization problem with both static and dynamic components. They…

Trading and Market Microstructure · Quantitative Finance 2017-05-09 Olivier Guéant

In future distribution grids, prosumers (i.e., energy consumers with storage and/or production capabilities) will trade energy with each other and with the main grid. To ensure an efficient and safe operation of energy trading, in this…

Systems and Control · Electrical Eng. & Systems 2022-06-14 Giuseppe Belgioioso , Wicak Ananduta , Sergio Grammatico , Carlos Ocampo-Martinez

We model a delivery platform facilitating transactions among three sides: buyers, stores, and couriers. In addition to buyers paying store-specific purchase prices and couriers receiving store--buyer-specific delivery compensation from the…

Computer Science and Game Theory · Computer Science 2025-07-16 Yannai A. Gonczarowski , Gary Qiurui Ma , David C. Parkes

We consider the theoretical properties of a model which encompasses bi-partite matching under transferable utility on the one hand, and hedonic pricing on the other. This framework is intimately connected to tripartite matching problems…

Economics · Quantitative Finance 2017-01-18 Brendan Pass

We study the bilateral trade problem: one seller, one buyer and a single, indivisible item for sale. It is well known that there is no fully-efficient and incentive compatible mechanism for this problem that maintains a balanced budget. We…

Computer Science and Game Theory · Computer Science 2018-11-20 Liad Blumrosen , Shahar Dobzinski

We propose a new forward electricity market framework that admits heterogeneous market participants with second-order cone strategy sets, who accurately express the nonlinearities in their costs and constraints through conic bids, and a…

Theoretical Economics · Economics 2022-12-20 Anubhav Ratha , Pierre Pinson , Hélène Le Cadre , Ana Virag , Jalal Kazempour

A coordinated trading process is proposed as a design for an electricity market with significant uncertainty, perhaps from renewables. In this process, groups of agents propose to the system operator (SO) a contingent buy and sell trade…

Optimization and Control · Mathematics 2017-08-28 Junjie Qin , Ram Rajagopal , Pravin Varaiya

Distributed energy resources behind the meter and automation systems enable traditional electricity consumers to become prosumers (producers/consumers) that can participate in peer-to-peer exchange of electricity and in retail electricity…

Systems and Control · Electrical Eng. & Systems 2021-03-05 Eve Tsybina , Justin Burkett , Santiago Grijalva

This paper studies the topic of cost-efficiency in incomplete markets. A payoff is called cost-efficient if it achieves a given probability distribution at some given investment horizon with a minimum initial budget. Extensive literature…

Portfolio Management · Quantitative Finance 2026-05-13 Carole Bernard , Stephan Sturm