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Traders in a market typically have widely different, private information on the return of an asset. The equilibrium price of the asset may reflect this information more accurately if the number of traders is large enough compared to the…

Statistical Mechanics · Physics 2019-08-17 Johannes Berg , Matteo Marsili , Aldo Rustichini , Riccardo Zecchina

We introduce the use of reinforcement learning for indirect mechanisms, working with the existing class of sequential price mechanisms, which generalizes both serial dictatorship and posted price mechanisms and essentially characterizes all…

Computer Science and Game Theory · Computer Science 2021-05-07 Gianluca Brero , Alon Eden , Matthias Gerstgrasser , David C. Parkes , Duncan Rheingans-Yoo

We study the role of contextual information in the online learning problem of brokerage between traders. In this sequential problem, at each time step, two traders arrive with secret valuations about an asset they wish to trade. The learner…

Computational Finance · Quantitative Finance 2026-02-20 François Bachoc , Tommaso Cesari , Roberto Colomboni

We are interested in enabling autonomous agents to learn and reason about systems with hidden states, such as locking mechanisms. We cast this problem as learning the parameters of a discrete Partially Observable Markov Decision Process…

Machine Learning · Computer Science 2026-02-04 Seiji Shaw , Travis Manderson , Chad Kessens , Nicholas Roy

Estimating consumer preferences is central to many problems in economics and marketing. This paper develops a flexible framework for learning individual preferences from partial ranking information by interpreting observed rankings as…

Machine Learning · Statistics 2026-02-19 Yu-Chang Chen , Chen Chian Fuh , Shang En Tsai

When does society eventually learn the truth, or take the correct action, via observational learning? In a general model of sequential learning over social networks, we identify a simple condition for learning dubbed excludability.…

Theoretical Economics · Economics 2024-04-05 Navin Kartik , SangMok Lee , Tianhao Liu , Daniel Rappoport

Real-world applications often require improved models by leveraging a range of cheap incidental supervision signals. These could include partial labels, noisy labels, knowledge-based constraints, and cross-domain or cross-task annotations…

Machine Learning · Computer Science 2021-09-13 Hangfeng He , Mingyuan Zhang , Qiang Ning , Dan Roth

I study a social learning model in which the object to learn is a strategic player's endogenous actions rather than an exogenous state. A patient seller faces a sequence of buyers and decides whether to build a reputation for supplying high…

Theoretical Economics · Economics 2020-11-03 Harry Pei

We study the problem of learning from aggregate observations where supervision signals are given to sets of instances instead of individual instances, while the goal is still to predict labels of unseen individuals. A well-known example is…

Machine Learning · Statistics 2021-01-08 Yivan Zhang , Nontawat Charoenphakdee , Zhenguo Wu , Masashi Sugiyama

We study learning by privately informed forward-looking agents in a simple repeated-action setting of social learning. Under a symmetric signal structure, forward-looking agents behave myopically for any degrees of patience. Myopic…

Theoretical Economics · Economics 2023-01-09 Dimitri Migrow

This work studies sequential social learning (also known as Bayesian observational learning), and how private communication can enable agents to avoid herding to the wrong action/state. Starting from the seminal BHW (Bikhchandani,…

Computer Science and Game Theory · Computer Science 2018-11-14 Grant Schoenebeck , Shih-Tang Su , Vijay Subramanian

Human demonstration data is often ambiguous and incomplete, motivating imitation learning approaches that also exhibit reliable planning behavior. A common paradigm to perform planning-from-demonstration involves learning a reward function…

In the world of big data, large but costly to label datasets dominate many fields. Active learning, a semi-supervised alternative to the standard PAC-learning model, was introduced to explore whether adaptive labeling could learn concepts…

Machine Learning · Computer Science 2020-06-02 Max Hopkins , Daniel M. Kane , Shachar Lovett

We study a framework where agents have to avoid aversive signals. The agents are given only partial information, in the form of features that are projections of task states. Additionally, the agents have to cope with non-determinism,…

Artificial Intelligence · Computer Science 2016-05-17 Tom J. Ameloot

We study a class of private learning problems in which the data is a join of private and public features. This is often the case in private personalization tasks such as recommendation or ad prediction, in which features related to…

Machine Learning · Computer Science 2023-10-25 Walid Krichene , Nicolas Mayoraz , Steffen Rendle , Shuang Song , Abhradeep Thakurta , Li Zhang

We introduce a new approach to incorporate uncertainty into the decision to invest in a commodity reserve. The investment is an irreversible one-off capital expenditure, after which the investor receives a stream of cashflow from extracting…

Mathematical Finance · Quantitative Finance 2018-07-31 Ali Al-Aradi , Alvaro Cartea , Sebastian Jaimungal

This paper is dedicated to a cautious learning methodology for predicting preferences between alternatives characterized by binary attributes (formally, each alternative is seen as a subset of attributes). By "cautious", we mean that the…

Artificial Intelligence · Computer Science 2022-06-16 Hugo Gilbert , Mohamed Ouaguenouni , Meltem Ozturk , Olivier Spanjaard

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

The learning rate is an information-theoretical quantity for bipartite Markov chains describing two coupled subsystems. It is defined as the rate at which transitions in the downstream subsystem tend to increase the mutual information…

Statistical Mechanics · Physics 2017-07-04 Rory A. Brittain , Nick S. Jones , Thomas E. Ouldridge

We examine the dynamics of informational efficiency in a market with asymmetrically informed, boundedly rational traders who adaptively learn optimal strategies using simple multiarmed bandit (MAB) algorithms. The strategies available to…

Theoretical Economics · Economics 2024-11-11 Aleksei Pastushkov