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Automated market makers (AMMs) have emerged as the dominant market mechanism for trading on decentralized exchanges implemented on blockchains. This paper presents a single mechanism that targets two important unsolved problems for AMMs:…

Trading and Market Microstructure · Quantitative Finance 2025-02-13 Austin Adams , Ciamac C. Moallemi , Sara Reynolds , Dan Robinson

Although both data availability and the demand for accurate forecasts are increasing, collaboration between stakeholders is often constrained by data ownership and competitive interests. In contrast to recent proposals within cooperative…

Machine Learning · Computer Science 2026-05-14 Michael Vitali , Pierre Pinson

We examine two-sided markets where players arrive stochastically over time and are drawn from a continuum of types. The cost of matching a client and provider varies, so a social planner is faced with two contending objectives: a) to reduce…

Computer Science and Game Theory · Computer Science 2020-01-06 Panayotis Mertikopoulos , Heinrich H. Nax , Bary S. R. Pradelski

In financial applications, latency advantages -- the ability to make decisions later than others, even without the ability to see what others have done -- can provide individual participants with an edge by allowing them to gather…

Theoretical Economics · Economics 2026-05-07 Ciamac C. Moallemi , Mallesh M. Pai , Dan Robinson

We consider the problem of co-optimized energy-reserve market clearing with state-of-charge (SoC) dependent bids from battery storage participants. While SoC-dependent bids capture storage's degradation and opportunity costs, such bids…

Systems and Control · Electrical Eng. & Systems 2024-08-27 Cong Chen , Siying Li , Lang Tong

For the case of inflexible demand and considering network constraints, we introduce a Cost Minimisation (CM) based market clearing mechanism, and a model representing the standard Social Welfare Maximisation mechanism used in European Day…

Computer Science and Game Theory · Computer Science 2022-11-08 Ioan Alexandru Puiu , Raphael Andreas Hauser

In online advertising markets, budget-constrained advertisers acquire ad placements through repeated bidding in auctions on various platforms. We present a strategy for bidding optimally in a set of auctions that may or may not be…

Computer Science and Game Theory · Computer Science 2023-06-14 Fransisca Susan , Negin Golrezaei , Okke Schrijvers

In classic auction theory, reserve prices are known to be effective for improving revenue for the auctioneer against quasi-linear utility maximizing bidders. The introduction of reserve prices, however, usually do not help improve total…

Computer Science and Game Theory · Computer Science 2021-11-05 Santiago Balseiro , Yuan Deng , Jieming Mao , Vahab Mirrokni , Song Zuo

In cloud investment markets, consumers are looking for the lowest cost and a desirable fairness while providers are looking for strategies to achieve the highest possible profit and return. Most existing models for auction-based resource…

Computer Science and Game Theory · Computer Science 2016-09-22 Reihaneh Hassanzadeh , Ali Movaghar , Hamid Reza Hassanzadeh

Since the 1990s, widespread introduction of central (wholesale) electricity markets has been seen across multiple continents, driven by the search for efficient operation of the power grid through competition. The increase of renewables has…

Systems and Control · Electrical Eng. & Systems 2025-10-15 Pål Forr Austnes , Matthieu Jacobs , Lu Wang , Mario Paolone

This paper presents an optimal scheduling model for a microgrid participating in the electricity distribution market in interaction with the Distribution Market Operator (DMO). The DMO is a concept proposed here, which administers the…

Systems and Control · Computer Science 2016-02-05 Sina Parhizi , Amin Khodaei

The growing competition drives the mobile network operators (MNOs) to explore adding time flexibility to the traditional data plan, which consists of a monthly subscription fee, a data cap, and a per-unit fee for exceeding the data cap. The…

Computer Science and Game Theory · Computer Science 2019-04-02 Zhiyuan Wang , Lin Gao , Jianwei Huang

Public goods are often either over-consumed in the absence of regulatory mechanisms, or remain completely unused, as in the Covid-19 pandemic, where social distance constraints are enforced to limit the number of people who can share public…

Computer Science and Game Theory · Computer Science 2021-05-25 Devansh Jalota , Qi Qi , Marco Pavone , Yinyu Ye

With the emergence of decentralized finance, new trading mechanisms called Automated Market Makers have appeared. The most popular Automated Market Makers are Constant Function Market Makers. They have been studied both theoretically and…

Trading and Market Microstructure · Quantitative Finance 2023-11-21 Philippe Bergault , Louis Bertucci , David Bouba , Olivier Guéant

Distribution markets are among the prospect being considered for the future of power systems. They would facilitate integration of distributed energy resources (DERs) and microgrids via a market mechanism and enable them to monetize…

Systems and Control · Computer Science 2016-08-09 Sina Parhizi , Amin Khodaei

Prediction markets allow traders to bet on potential future outcomes. These markets exist for weather, political, sports, and economic forecasting. Within this work we consider a decentralized framework for prediction markets using…

Mathematical Finance · Quantitative Finance 2025-01-10 Hamed Amini , Maxim Bichuch , Zachary Feinstein

We consider the classical linear assignment problem, and we introduce new auction algorithms for its optimal and suboptimal solution. The algorithms are founded on duality theory, and are related to ideas of competitive bidding by persons…

Computer Science and Game Theory · Computer Science 2023-10-24 Dimitri Bertsekas

The limit order book mechanism has been the core trading mechanism of the modern financial market. In the cryptocurrency market, centralized exchanges also adopt this limit order book mechanism and a centralized matching engine dynamically…

Computational Engineering, Finance, and Science · Computer Science 2022-12-21 Yeonwoo Jeong , Chanyoung Jeoung , Hosan Jeong , SangYoon Han , Juntae Kim

We study incentive compatible mechanisms for Combinatorial Auctions where the bidders have submodular (or XOS) valuations and are budget-constrained. Our objective is to maximize the \emph{liquid welfare}, a notion of efficiency for…

Computer Science and Game Theory · Computer Science 2018-12-14 Dimitris Fotakis , Kyriakos Lotidis , Chara Podimata

Posted price mechanisms are prevalent in allocating goods within online marketplaces due to their simplicity and practical efficiency. We explore a fundamental scenario where buyers' valuations are independent and identically distributed,…

Computer Science and Game Theory · Computer Science 2025-05-26 José Correa , Vasilis Livanos , Dana Pizarro , Victor Verdugo
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