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The deployment of autonomous AI agents in derivatives markets has widened a practical gap between static model calibration and realized hedging outcomes. We introduce two reinforcement learning frameworks, a novel Replication Learning of…

Artificial Intelligence · Computer Science 2026-03-10 Minxuan Hu , Ziheng Chen , Jiayu Yi , Wenxi Sun

The inherent volatility and dynamic fluctuations within the financial stock market underscore the necessity for investors to employ a comprehensive and reliable approach that integrates risk management strategies, market trends, and the…

Trading and Market Microstructure · Quantitative Finance 2024-11-13 Alhassan S. Yasin , Prabdeep S. Gill

Reinforcement learning (RL) algorithms aim to learn optimal decisions in unknown environments through experience of taking actions and observing the rewards gained. In some cases, the environment is not influenced by the actions of the RL…

Learning a risk-aware policy is essential but rather challenging in unstructured robotic tasks. Safe reinforcement learning methods open up new possibilities to tackle this problem. However, the conservative policy updates make it…

Machine Learning · Computer Science 2022-12-15 Linrui Zhang , Zichen Yan , Li Shen , Shoujie Li , Xueqian Wang , Dacheng Tao

Financial markets are influenced by human behavior that deviates from rationality due to cognitive biases. Traditional reinforcement learning (RL) models for financial decision-making assume rational agents, potentially overlooking the…

Machine Learning · Computer Science 2026-01-14 Liu He

Socialbots are software-driven user accounts on social platforms, acting autonomously (mimicking human behavior), with the aims to influence the opinions of other users or spread targeted misinformation for particular goals. As socialbots…

Social and Information Networks · Computer Science 2022-03-01 Thai Le , Long Tran-Thanh , Dongwon Lee

Reinforcement learning (RL) is not yet competitive for many cyber-physical systems, such as robotics, process automation, and power systems, as training on a system with physical components cannot be accelerated, and simulation models do…

Machine Learning · Computer Science 2024-11-01 Philipp Gassert , Matthias Althoff

When interacting with people, AI agents do not just influence the state of the world -- they also influence the actions people take in response to the agent, and even their underlying intentions and strategies. Accounting for and leveraging…

Artificial Intelligence · Computer Science 2023-10-31 Joey Hong , Sergey Levine , Anca Dragan

Reinforcement learning (RL) is an innovative approach to financial decision making, offering specialized solutions to complex investment problems where traditional methods fail. This review analyzes 167 articles from 2017--2025, focusing on…

Computational Finance · Quantitative Finance 2025-12-12 Mohammad Rezoanul Hoque , Md Meftahul Ferdaus , M. Kabir Hassan

Reinforcement learning (RL) has shown significant promise for sequential portfolio optimization tasks, such as stock trading, where the objective is to maximize cumulative returns while minimizing risks using historical data. However,…

Machine Learning · Computer Science 2025-05-20 Haochen Yuan , Minting Pan , Yunbo Wang , Siyu Gao , Philip S. Yu , Xiaokang Yang

Although safety stock optimisation has been studied for more than 60 years, most companies still use simplistic means to calculate necessary safety stock levels, partly due to the mismatch between existing analytical methods' emphases on…

Multiagent Systems · Computer Science 2021-07-05 Edward Elson Kosasih , Alexandra Brintrup

The increased complexity of state-of-the-art reinforcement learning (RL) algorithms have resulted in an opacity that inhibits explainability and understanding. This has led to the development of several post-hoc explainability methods that…

Machine Learning · Computer Science 2022-03-25 Charl Maree , Christian Omlin

Our goal is for agents to optimize the right reward function, despite how difficult it is for us to specify what that is. Inverse Reinforcement Learning (IRL) enables us to infer reward functions from demonstrations, but it usually assumes…

Machine Learning · Computer Science 2019-06-25 Rohin Shah , Noah Gundotra , Pieter Abbeel , Anca D. Dragan

We propose a framework for ensuring safe behavior of a reinforcement learning agent when the reward function may be difficult to specify. In order to do this, we rely on the existence of demonstrations from expert policies, and we provide a…

Machine Learning · Computer Science 2018-11-22 Jessie Huang , Fa Wu , Doina Precup , Yang Cai

Although reinforcement learning methods offer a powerful framework for automatic skill acquisition, for practical learning-based control problems in domains such as robotics, imitation learning often provides a more convenient and…

Artificial Intelligence · Computer Science 2024-03-20 Jianlan Luo , Perry Dong , Yuexiang Zhai , Yi Ma , Sergey Levine

Imitation learning is an effective alternative approach to learn a policy when the reward function is sparse. In this paper, we consider a challenging setting where an agent and an expert use different actions from each other. We assume…

Machine Learning · Computer Science 2019-08-27 Konrad Zolna , Negar Rostamzadeh , Yoshua Bengio , Sungjin Ahn , Pedro O. Pinheiro

In real-life scenarios, a Reinforcement Learning (RL) agent aiming to maximise their reward, must often also behave in a safe manner, including at training time. Thus, much attention in recent years has been given to Safe RL, where an agent…

Machine Learning · Statistics 2025-03-26 Edwin Hamel-De le Court , Francesco Belardinelli , Alexander W. Goodall

Reinforcement learning (RL) in the real world necessitates the development of procedures that enable agents to explore without causing harm to themselves or others. The most successful solutions to the problem of safe RL leverage offline…

Machine Learning · Computer Science 2025-01-09 Alexander Quessy , Thomas Richardson , Sebastian East

The act of bluffing confounds game designers to this day. The very nature of bluffing is even open for debate, adding further complication to the process of creating intelligent virtual players that can bluff, and hence play, realistically.…

Artificial Intelligence · Computer Science 2007-05-23 Evan Hurwitz , Tshilidzi Marwala

How can we design good goals for arbitrarily intelligent agents? Reinforcement learning (RL) is a natural approach. Unfortunately, RL does not work well for generally intelligent agents, as RL agents are incentivised to shortcut the reward…

Artificial Intelligence · Computer Science 2016-05-11 Tom Everitt , Marcus Hutter