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There has been substantial recent concern that pricing algorithms might learn to ``collude.'' Supra-competitive prices can emerge as a Nash equilibrium of repeated pricing games, in which sellers play strategies which threaten to punish…

Computer Science and Game Theory · Computer Science 2024-12-17 Eshwar Ram Arunachaleswaran , Natalie Collina , Sampath Kannan , Aaron Roth , Juba Ziani

Many ethical issues in machine learning are connected to the training data. Online data markets are an important source of training data, facilitating both production and distribution. Recently, a trend has emerged of for-profit "ethical"…

Computer Science and Game Theory · Computer Science 2025-02-03 Augustin Chaintreau , Roland Maio , Juba Ziani

We look at discovering the impact of market microstructure on equitability for market participants at public exchanges such as the New York Stock Exchange or NASDAQ. Are these environments equitable venues for low-frequency participants…

Multiagent Systems · Computer Science 2021-11-02 Kshama Dwarakanath , Svitlana S Vyetrenko , Tucker Balch

Compared to classical machine learning (ML) models, generative models offer a new usage paradigm where (i) a single model can be used for many different tasks out-of-the-box; (ii) users interact with this model over a series of natural…

Computer Science and Game Theory · Computer Science 2024-11-06 Rafid Mahmood

We apply Reinforcement Learning algorithms to solve the classic quantitative finance Market Making problem, in which an agent provides liquidity to the market by placing buy and sell orders while maximizing a utility function. The optimal…

Machine Learning · Computer Science 2021-04-12 Matias Selser , Javier Kreiner , Manuel Maurette

An automated market maker (AMM) provides a method for creating a decentralized exchange on the blockchain. For this purpose, individual investors lend liquidity to the AMM pool in exchange for a stream of fees earned from its operations as…

Mathematical Finance · Quantitative Finance 2025-09-30 Maxim Bichuch , Zachary Feinstein

In the future, artificial learning agents are likely to become increasingly widespread in our society. They will interact with both other learning agents and humans in a variety of complex settings including social dilemmas. We consider the…

Computer Science and Game Theory · Computer Science 2019-11-21 Tobias Baumann , Thore Graepel , John Shawe-Taylor

Traditional competitive markets do not account for negative externalities; indirect costs that some participants impose on others, such as the cost of over-appropriating a common-pool resource (which diminishes future stock, and thus…

Multiagent Systems · Computer Science 2023-01-16 Panayiotis Danassis , Aris Filos-Ratsikas , Haipeng Chen , Milind Tambe , Boi Faltings

We study the behavior of an economic platform (e.g., Amazon, Uber Eats, Instacart) under shocks, such as COVID-19 lockdowns, and the effect of different regulation considerations imposed on a platform. To this end, we develop a multi-agent…

Multiagent Systems · Computer Science 2023-01-06 Xintong Wang , Gary Qiurui Ma , Alon Eden , Clara Li , Alexander Trott , Stephan Zheng , David C. Parkes

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

In the ever evolving landscape of decentralized finance automated market makers (AMMs) play a key role: they provide a market place for trading assets in a decentralized manner. For so-called bluechip pairs, arbitrage activity provides a…

Statistical Finance · Quantitative Finance 2025-05-16 Abe Alexander , Lars Fritz

Reciprocity is an important feature of human social interaction and underpins our cooperative nature. What is more, simple forms of reciprocity have proved remarkably resilient in matrix game social dilemmas. Most famously, the tit-for-tat…

Multiagent Systems · Computer Science 2019-03-20 Tom Eccles , Edward Hughes , János Kramár , Steven Wheelwright , Joel Z. Leibo

We study the role of imitation within a model of economics with adaptive agents. The basic ingredients are those of the Minority Game. We add the possibility of local information exchange and imitation of the neighbour's strategy. Imitators…

Statistical Mechanics · Physics 2009-11-07 Frantisek Slanina

Matching markets are of particular interest in computer science and economics literature as they are often used to model real-world phenomena where we aim to equitably distribute a limited amount of resources to multiple agents and…

Computer Science and Game Theory · Computer Science 2021-10-01 Andrew Yang , Bruce Changlong Xu , Ivan Villa-Renteria

In imitation learning, an agent learns how to behave in an environment with an unknown cost function by mimicking expert demonstrations. Existing imitation learning algorithms typically involve solving a sequence of planning or…

Machine Learning · Computer Science 2016-06-17 Jonathan Ho , Jayesh K. Gupta , Stefano Ermon

Interference between treated and untreated units is a source of bias in marketplace experiments. In this paper, we specifically consider pricing interventions, in which a platform seeks to adjust base pricing levels at the marketplace level…

Optimization and Control · Mathematics 2025-02-27 Arthur Delarue , Kleanthis Karakolios

Automated Market Makers (AMMs) are emerging as a popular decentralised trading platform. In this work, we determine the optimal dynamic fees in a constant function market maker. We find approximate closed-form solutions to the control…

Trading and Market Microstructure · Quantitative Finance 2025-06-26 Leonardo Baggiani , Martin Herdegen , Leandro Sánchez-Betancourt

The prevention of rapidly and steeply falling market prices is vital to avoid financial crisis. To this end, some stock exchanges implement a price limit or a circuit breaker, and there has been intensive investigation into which regulation…

Computational Finance · Quantitative Finance 2023-09-20 Takanobu Mizuta , Isao Yagi

There is growing concern about tacit collusion using algorithmic pricing, and regulators need tools to help detect the possibility of such collusion. This paper studies how to design a hypothesis testing framework in order to decide whether…

Computer Science and Game Theory · Computer Science 2020-03-31 Pedro Hespanhol , Anil Aswani

In this paper we introduce and analyse, from a game theoretical perspective, several multi-agent or multi-item continuous review inventory models in which the buyers are exempted from ordering costs if the price of their orders is greater…

Computer Science and Game Theory · Computer Science 2024-02-12 M. Gloria Fiestras-Janeiro , Ignacio García-Jurado , Ana Meca , Manuel A. Mosquera