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Market makers play an important role in providing liquidity to markets by continuously quoting prices at which they are willing to buy and sell, and managing inventory risk. In this paper, we build a multi-agent simulation of a dealer…

Trading and Market Microstructure · Quantitative Finance 2019-11-15 Sumitra Ganesh , Nelson Vadori , Mengda Xu , Hua Zheng , Prashant Reddy , Manuela Veloso

Cooperation is fundamental for society's viability, as it enables the emergence of structure within heterogeneous groups that seek collective well-being. However, individuals are inclined to defect in order to benefit from the group's…

Multiagent Systems · Computer Science 2026-02-10 Yao-hua Franck Xu , Tayeb Lemlouma , Arnaud Braud , Jean-Marie Bonnin

We present our approach to the problem of how an agent, within an economic Multi-Agent System, can determine when it should behave strategically (i.e. learn and use models of other agents), and when it should act as a simple price-taker. We…

Multiagent Systems · Computer Science 2007-05-23 Jose M. Vidal , Edmund H. Durfee

Social dilemmas, where mutual cooperation can lead to high payoffs but participants face incentives to cheat, are ubiquitous in multi-agent interaction. We wish to construct agents that cooperate with pure cooperators, avoid exploitation by…

Artificial Intelligence · Computer Science 2019-05-27 Alexander Peysakhovich , Adam Lerer

Social dilemmas have been widely studied to explain how humans are able to cooperate in society. Considerable effort has been invested in designing artificial agents for social dilemmas that incorporate explicit agent motivations that are…

Multiagent Systems · Computer Science 2021-08-30 Nicolas Anastassacos , Stephen Hailes , Mirco Musolesi

We consider the multi-agent reinforcement learning setting with imperfect information in which each agent is trying to maximize its own utility. The reward function depends on the hidden state (or goal) of both agents, so the agents must…

Artificial Intelligence · Computer Science 2018-03-28 Roberta Raileanu , Emily Denton , Arthur Szlam , Rob Fergus

Algorithmic collusion has emerged as a central question in AI: Will the interaction between different AI agents deployed in markets lead to collusion? More generally, understanding how emergent behavior, be it a cartel or market dominance…

Multiagent Systems · Computer Science 2025-10-31 Ziyi Wang , Carmine Ventre , Maria Polukarov

Social dilemmas are situations where groups of individuals can benefit from mutual cooperation but conflicting interests impede them from doing so. This type of situations resembles many of humanity's most critical challenges, and…

Machine Learning · Computer Science 2023-05-22 Manuel Rios , Nicanor Quijano , Luis Felipe Giraldo

In repeated games, such as auctions, players rely on autonomous learning agents to choose their actions. We study settings in which players have their agents make monetary transfers to other agents during play at their own expense, in order…

Computer Science and Game Theory · Computer Science 2026-02-12 Yoav Kolumbus , Joe Halpern , Éva Tardos

The usage of automated learning agents is becoming increasingly prevalent in many online economic applications such as online auctions and automated trading. Motivated by such applications, this paper is dedicated to fundamental modeling…

Computer Science and Game Theory · Computer Science 2023-01-04 Yoav Kolumbus , Noam Nisan

The real world is awash with multi-agent problems that require collective action by self-interested agents, from the routing of packets across a computer network to the management of irrigation systems. Such systems have local incentives…

Multiagent Systems · Computer Science 2021-02-16 Michiel A. Bakker , Richard Everett , Laura Weidinger , Iason Gabriel , William S. Isaac , Joel Z. Leibo , Edward Hughes

We study environments in which agents are randomly matched to play a Prisoner's Dilemma, and each player observes a few of the partner's past actions against previous opponents. We depart from the existing related literature by allowing a…

Theoretical Economics · Economics 2020-06-30 Yuval Heller , Erik Mohlin

Game theory has been developed by scientists as a theory of strategic interaction among players who are supposed to be perfectly rational. These strategic interactions might have been presented in an auction, a business negotiation, a chess…

Computer Science and Game Theory · Computer Science 2020-04-07 Medet Kanmaz , Elif Surer

Social dilemmas are situations where individuals face a temptation to increase their payoffs at a cost to total welfare. Building artificially intelligent agents that achieve good outcomes in these situations is important because many real…

Artificial Intelligence · Computer Science 2018-03-05 Adam Lerer , Alexander Peysakhovich

In the coming years, AI agents will be used for making more complex decisions, including in situations involving many different groups of people. One big challenge is that AI agent tends to act in its own interest, unlike humans who often…

Multiagent Systems · Computer Science 2024-09-06 Shunichi Akatsuka , Yaemi Teramoto , Aaron Courville

Game theory serves as a powerful tool for distributed optimization in multi-agent systems in different applications. In this paper we consider multi-agent systems that can be modeled by means of potential games whose potential function…

Optimization and Control · Mathematics 2018-04-13 Tatiana Tatarenko

Reinforcement Learning has emerged as a promising framework for developing adaptive and data-driven strategies, enabling market makers to optimize decision-making policies based on interactions with the limit order book environment. This…

Trading and Market Microstructure · Quantitative Finance 2026-02-17 Rafael Zimmer , Oswaldo Luiz do Valle Costa

The significance of network structures in promoting group cooperation within social dilemmas has been widely recognized. Prior studies attribute this facilitation to the assortment of strategies driven by spatial interactions. Although…

Multiagent Systems · Computer Science 2024-08-20 Tianyu Ren , Xiao-Jun Zeng

Collusion in market pricing is a concept associated with human actions to raise market prices through artificially limited supply. Recently, the idea of algorithmic collusion was put forward, where the human action in the pricing process is…

Theoretical Economics · Economics 2025-01-29 Suzie Grondin , Arthur Charpentier , Philipp Ratz

Modern AI systems increasingly operate inside markets and institutions where data, behavior, and incentives are endogenous. This paper develops an economic foundation for multi-agent learning by studying a principal-agent interaction in a…

Machine Learning · Statistics 2026-01-08 Nassim Helou