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In this paper, we rigorously study the problem of cost optimisation of hybrid (mixed) institutional incentives, which are a plan of actions involving the use of reward and punishment by an external decision-maker, for maximising the level…

Populations and Evolution · Quantitative Biology 2023-10-09 M. H. Duong , C. M. Durbac , T. A. Han

We present an experimental and simulated model of a multi-agent stock market driven by a double auction order matching mechanism. Studying the effect of cumulative information on the performance of traders, we find a non monotonic…

Physics and Society · Physics 2009-11-13 Bence Toth , Enrico Scalas , Juergen Huber , Michael Kirchler

A general information equilibrium model in the case of ideal information transfer is defined and then used to derive the relationship between supply (information destination) and demand (information source) with the price as the detector of…

Economics · Quantitative Finance 2015-10-09 Jason Smith

We consider a model of bilateral trade with private values. The value of the buyer and the cost of the seller are jointly distributed. The true joint distribution is unknown to the designer, however, the marginal distributions of the value…

Theoretical Economics · Economics 2023-01-02 Komal Malik

This paper investigates the efficiency loss in social cost caused by strategic bidding behavior of individual participants in a supply-demand balancing market, and proposes a mechanism to fully recover equilibrium social optimum via…

Optimization and Control · Mathematics 2021-06-22 Kaiying Lin , Beibei Wang , Pengcheng You

We analyze the efficiency of markets with friction, particularly power markets. We model the market as a dynamic system with $(d_t;\,t\geq 0)$ the demand process and $(s_t;\,t\geq 0)$ the supply process. Using stochastic differential…

Systems and Control · Computer Science 2011-09-19 Arman C. Kizilkale , Shie Mannor

In a unified framework we study equilibrium in the presence of an insider having information on the signal of the firm value, which is naturally connected to the fundamental price of the firm related asset. The fundamental value itself is…

Pricing of Securities · Quantitative Finance 2018-03-07 José Manuel Corcuera , Giulia Di Nunno , Gergely Farkas , Bernt Øksendal

We study non-monetary mechanisms for the fair and efficient allocation of reusable public resources, i.e., resources used for varying durations. We consider settings where a limited resource is repeatedly shared among a set of agents, each…

Computer Science and Game Theory · Computer Science 2023-10-17 Siddhartha Banerjee , Giannis Fikioris , Éva Tardos

The buying and selling of information is taking place at a scale unprecedented in the history of commerce, thanks to the formation of online marketplaces for user data. Data providing agencies sell user information to advertisers to allow…

Computer Science and Game Theory · Computer Science 2012-04-26 Moshe Babaioff , Robert Kleinberg , Renato Paes Leme

The coordinated operation of interconnected but locally controlled electricity markets is generally referred to as a "coupling". In this paper we propose a new mechanism design for efficient coupling of independent electricity markets. The…

Optimization and Control · Mathematics 2021-01-13 Alfredo Garcia , Roohallah Khatami , Ceyhun Eksin , Furkan Sezer

A data intermediary acquires signals from individual consumers regarding their preferences. The intermediary resells the information in a product market wherein firms and consumers tailor their choices to the demand data. The social…

Computer Science and Game Theory · Computer Science 2022-09-30 Dirk Bergemann , Alessandro Bonatti , Tan Gan

This paper explores the design of a balanced data-sharing marketplace for entities with heterogeneous datasets and machine learning models that they seek to refine using data from other agents. The goal of the marketplace is to encourage…

Computer Science and Game Theory · Computer Science 2024-01-25 Aditya Bhaskara , Sreenivas Gollapudi , Sungjin Im , Kostas Kollias , Kamesh Munagala , Govind S. Sankar

We study repeated bilateral trade when the valuations of the sellers and the buyers are contextual. More precisely, the agents' valuations are given by the inner product of a context vector with two unknown $d$-dimensional vectors -- one…

Computer Science and Game Theory · Computer Science 2026-02-16 Romain Cosson , Federico Fusco , Anupam Gupta , Stefano Leonardi , Renato Paes Leme , Matteo Russo

Modern mainstream financial theory is underpinned by the efficient market hypothesis, which posits the rapid incorporation of relevant information into asset pricing. Limited prior studies in the operational research literature have…

Applications · Statistics 2023-09-07 Ben Moews

We study the informational efficiency of a market with a single traded asset. The price initially differs from the fundamental value, about which the agents have noisy private information (which is, on average, correct). A fraction of…

Trading and Market Microstructure · Quantitative Finance 2014-01-10 Gani Aldashev , Timoteo Carletti , Simone Righi

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

Motivated by the emergence of popular service-based two-sided markets where sellers can serve multiple buyers at the same time, we formulate and study the {\em two-sided cost sharing} problem. In two-sided cost sharing, sellers incur…

Computer Science and Game Theory · Computer Science 2021-07-14 Sreenivas Gollapudi , Kostas Kollias , Ali Shameli

While load balancing in distributed-memory computing has been well-studied, we present an innovative approach to this problem: a unified, reduced-order model that combines three key components to describe "work" in a distributed system:…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-04-26 Jonathan Lifflander , Philippe P. Pebay , Nicole L. Slattengren , Pierre L. Pebay , Robert A. Pfeiffer , Joseph D. Kotulski , Sean T. McGovern

Exchange markets are a significant type of market economy, in which each agent holds a budget and certain (divisible) resources available for trading. Most research on equilibrium in exchange economies is based on an environment of…

Computer Science and Game Theory · Computer Science 2024-10-10 Yusen Zheng , Yukun Cheng , Chenyang Xu , Xiaotie Deng

We study online bilateral trade, where a learner facilitates repeated exchanges between a buyer and a seller to maximize the Gain From Trade (GFT), i.e., the social welfare. In doing so, the learner must guarantee not to subsidize the…

Computer Science and Game Theory · Computer Science 2026-02-06 Anna Lunghi , Mattia Piccinato , Matteo Castiglioni , Alberto Marchesi