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We present a methodology to robustly estimate the competitive equilibria (CE) of combinatorial markets under the assumption that buyers do not know their precise valuations for bundles of goods, but instead can only provide noisy estimates.…

Computer Science and Game Theory · Computer Science 2021-01-26 Enrique Areyan Viqueira , Cyrus Cousins , Amy Greenwald

Recent work has shown that machine learning (ML) models can be trained to accurately forecast the dynamics of unknown chaotic dynamical systems. Short-term predictions of the state evolution and long-term predictions of the statistical…

Machine Learning · Computer Science 2022-12-13 Alexander Wikner , Joseph Harvey , Michelle Girvan , Brian R. Hunt , Andrew Pomerance , Thomas Antonsen , Edward Ott

This paper studies Markov perfect equilibria in a repeated duopoly model where sellers choose algorithms. An algorithm is a mapping from the competitor's price to own price. Once set, algorithms respond quickly. Customers arrive randomly…

Theoretical Economics · Economics 2022-07-04 Rohit Lamba , Sergey Zhuk

It is a common practice in the current literature of electricity markets to use game-theoretic approaches for strategic price bidding. However, they generally rely on the assumption that the strategic bidders have prior knowledge of rival…

Computer Science and Game Theory · Computer Science 2024-04-05 Arega Getaneh Abate , Dorsa Majdi , Jalal Kazempour , Maryam Kamgarpour

Effective properties of materials with random heterogeneous structures are typically determined by homogenising the mechanical quantity of interest in a window of observation. The entire problem setting encompasses the solution of a local…

Numerical Analysis · Mathematics 2021-10-22 Felipe Rocha , Simone Deparis , Pablo Antolin , Annalisa Buffa

We study an online learning problem on dynamic pricing and resource allocation, where we make joint pricing and inventory decisions to maximize the overall net profit. We consider the stochastic dependence of demands on the price, which…

Machine Learning · Computer Science 2025-05-23 Jianyu Xu , Xuan Wang , Yu-Xiang Wang , Jiashuo Jiang

Predictive models are often used for real-time decision making. However, typical machine learning techniques ignore feature evaluation cost, and focus solely on the accuracy of the machine learning models obtained utilizing all the features…

Machine Learning · Computer Science 2014-08-19 Leilani Battle , Edward Benson , Aditya Parameswaran , Eugene Wu

Given an inverse problem with a normalizing flow prior, we wish to estimate the distribution of the underlying signal conditioned on the observations. We approach this problem as a task of conditional inference on the pre-trained…

Machine Learning · Statistics 2021-06-16 Jay Whang , Erik M. Lindgren , Alexandros G. Dimakis

Mainstream financial econometrics methods are based on models well tuned to replicate price dynamics, but with little to no economic justification. In particular, the randomness in these models is assumed to result from a combination of…

Pricing of Securities · Quantitative Finance 2019-10-23 Bernard De Meyer , Moussa Dabo

Options have provided a field of much study because of the complexity involved in pricing them. The Black-Scholes equations were developed to price options but they are only valid for European styled options. There is added complexity when…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Michael Maio Pires , Tshilidzi Marwala

In this paper we provide a comprehensive analysis of a structural model for the dynamics of prices of assets traded in a market originally proposed in [1]. The model takes the form of an interacting generalization of the geometric Brownian…

Statistical Finance · Quantitative Finance 2018-06-06 Kartik Anand , Jonathan Khedair , Reimer Kuehn

The main goal of this paper is to develop a theory of inference of player valuations from observed data in the generalized second price auction without relying on the Nash equilibrium assumption. Existing work in Economics on inferring…

Computer Science and Game Theory · Computer Science 2015-05-05 Denis Nekipelov , Vasilis Syrgkanis , Eva Tardos

Internet advertisers (buyers) repeatedly procure ad impressions from ad platforms (sellers) with the aim to maximize total conversion (i.e. ad value) while respecting both budget and return-on-investment (ROI) constraints for efficient…

Computer Science and Game Theory · Computer Science 2023-02-08 Negin Golrezaei , Patrick Jaillet , Jason Cheuk Nam Liang , Vahab Mirrokni

Sponsored search is an important monetization channel for search engines, in which an auction mechanism is used to select the ads shown to users and determine the prices charged from advertisers. There have been several pieces of work in…

Computer Science and Game Theory · Computer Science 2014-06-05 Di He , Wei Chen , Liwei Wang , Tie-Yan Liu

We present the notion of monotone solution of mean field games master equations in the case of a continuous state space. We establish the existence, uniqueness and stability of such solutions under standard assumptions. This notion allows…

Analysis of PDEs · Mathematics 2023-10-27 Charles Bertucci

We introduce twin neural network (TNN) regression. This method predicts differences between the target values of two different data points rather than the targets themselves. The solution of a traditional regression problem is then obtained…

Machine Learning · Computer Science 2022-12-14 Sebastian J. Wetzel , Kevin Ryczko , Roger G. Melko , Isaac Tamblyn

Traditional machine learning methods have been widely studied in financial innovation. My study focuses on the application of deep learning methods on asset pricing. I investigate various deep learning methods for asset pricing, especially…

Statistical Finance · Quantitative Finance 2022-09-27 Chen Zhang

Employing probabilistic techniques we compute best possible upper and lower bounds on the price of an option on one or two assets with continuous piecewise linear payoff function based on prices of simple call options of possibly distinct…

Probability · Mathematics 2008-12-02 Dimitris Bertsimas , Natasha Bushueva

Development of robust concrete mixes with a lower environmental impact is challenging due to natural variability in constituent materials and a multitude of possible combinations of mix proportions. Making reliable property predictions with…

Machine Learning · Computer Science 2023-04-25 Jessica C. Forsdyke , Bahdan Zviazhynski , Janet M. Lees , Gareth J. Conduit

By searching for shared inductive biases across tasks, meta-learning promises to accelerate learning on novel tasks, but with the cost of solving a complex bilevel optimization problem. We introduce and rigorously define the trade-off…

Machine Learning · Computer Science 2021-04-15 Katelyn Gao , Ozan Sener