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We present two models for incorporating the total effect of market microstructure noise into dynamic pricing of assets and European options. The first model is developed under a Black-Scholes-Merton, continuous-time framework. The second…

Pricing of Securities · Quantitative Finance 2025-11-04 Peter Yegon , W. Brent Lindquist , Svetlozar T. Rachev

The price of anarchy, originally introduced to quantify the inefficiency of selfish behavior in routing games, is extended to mean field games. The price of anarchy is defined as the ratio of a worst case social cost computed for a mean…

Optimization and Control · Mathematics 2018-08-31 Rene Carmona , Christy V. Graves , Zongjun Tan

Finite-state mean-field games (MFGs) arise as limits of large interacting particle systems and are governed by an MFG system, a coupled forward-backward differential equation consisting of a forward Kolmogorov-Fokker-Planck (KFP) equation…

Optimization and Control · Mathematics 2026-02-16 William Hofgard , Asaf Cohen , Mathieu Laurière

Conventional predictive Artificial Neural Networks (ANNs) commonly employ deterministic weight matrices; therefore, their prediction is a point estimate. Such a deterministic nature in ANNs causes the limitations of using ANNs for medical…

Machine Learning · Computer Science 2020-07-02 Minhyeok Lee , Junhee Seok

We propose a game-based formulation for learning dimensionality-reducing representations of feature vectors, when only a prior knowledge on future prediction tasks is available. In this game, the first player chooses a representation, and…

Machine Learning · Computer Science 2024-03-12 Neria Uzan , Nir Weinberger

In this paper machine learning and artificial neural network models are proposed for the classification of external noise sources affecting a given quantum dynamics. For this purpose, we train and then validate support vector machine,…

Quantum Physics · Physics 2023-02-17 Stefano Martina , Stefano Gherardini , Filippo Caruso

In the information-based approach to asset pricing the market filtration is modelled explicitly as a superposition of signals concerning relevant market factors and independent noise. The rate at which the signal is revealed to the market…

Pricing of Securities · Quantitative Finance 2010-09-21 Dorje C. Brody , Yan Tai Law

We study reserve price optimization in multi-phase second price auctions, where the seller's prior actions affect the bidders' later valuations through a Markov Decision Process (MDP). Compared to the bandit setting in existing works, the…

Machine Learning · Computer Science 2026-03-04 Rui Ai , Boxiang Lyu , Zhaoran Wang , Zhuoran Yang , Michael I. Jordan

Machine learning methods for solving the equations of dynamical mean-field theory are developed. The method is demonstrated on the three dimensional Hubbard model. The key technical issues are defining a mapping of an input function to an…

Strongly Correlated Electrons · Physics 2015-07-01 Louis-François Arsenault , O. Anatole von Lilienfeld , Andrew J. Millis

We consider Mean Field Games without idiosyncratic but with Brownian type common noise. We introduce a notion of solutions of the associated backward-forward system of stochastic partial differential equations. We show that the solution…

Analysis of PDEs · Mathematics 2020-09-28 Pierre Cardaliaguet , Panagiotis Souganidis

Category imbalance is one of the most popular and important issues in the domain of classification. Emotion classification model trained on imbalanced datasets easily leads to unreliable prediction. The traditional machine learning method…

Computer Vision and Pattern Recognition · Computer Science 2025-01-27 Lu Jiang , Qi Wang , Yuhang Chang , Jianing Song , Haoyue Fu , Xiaochun Yang

Financial markets are nonlinear with complexity, where different types of assets are traded between buyers and sellers, each having a view to maximize their Return on Investment (ROI). Forecasting market trends is a challenging task since…

Trading and Market Microstructure · Quantitative Finance 2024-11-22 Sahand Hassanizorgabad

In this paper we explore the impact of quantiles on optimal strategies under state dynamics driven by both individual noise, common noise and Poisson jumps. We first establish an optimality system satisfied the quantile process under jump…

Optimization and Control · Mathematics 2017-08-22 Hamidou Tembine

Recently, substantial progress has been made in language modeling by using deep neural networks. However, in practice, large scale neural language models have been shown to be prone to overfitting. In this paper, we present a simple yet…

Machine Learning · Computer Science 2019-09-10 Dilin Wang , Chengyue Gong , Qiang Liu

We introduce a Loss Discounting Framework for model and forecast combination which generalises and combines Bayesian model synthesis and generalized Bayes methodologies. We use a loss function to score the performance of different models…

Methodology · Statistics 2024-03-29 Dawid Bernaciak , Jim E. Griffin

Recent advancements in the fields of artificial intelligence and machine learning methods resulted in a significant increase of their popularity in the literature, including electricity price forecasting. Said methods cover a very broad…

Applications · Statistics 2020-08-19 Grzegorz Marcjasz , Jesus Lago , Rafał Weron

Many tasks in explainable machine learning, such as data valuation and feature attribution, perform expensive computation for each data point and are intractable for large datasets. These methods require efficient approximations, and…

Machine Learning · Computer Science 2024-10-31 Ian Covert , Chanwoo Kim , Su-In Lee , James Zou , Tatsunori Hashimoto

We apply the generalized conditional gradient algorithm to potential mean field games and we show its well-posedeness. It turns out that this method can be interpreted as a learning method called fictitious play. More precisely, each step…

Analysis of PDEs · Mathematics 2021-09-14 J Frédéric Bonnans , Pierre Lavigne , Laurent Pfeiffer

A common assumption in machine learning is that samples are independently and identically distributed (i.i.d). However, the contributions of different samples are not identical in training. Some samples are difficult to learn and some…

Machine Learning · Computer Science 2021-11-23 Ou Wu , Weiyao Zhu , Yingjun Deng , Haixiang Zhang , Qinghu Hou

Mean Field Game (MFG) models implicitly assume "rational expectations", meaning that the heterogeneous agents being modeled correctly know all relevant transition probabilities for the complex system they inhabit. When there is common…

Analysis of PDEs · Mathematics 2026-02-26 Benjamin Moll , Lenya Ryzhik