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We study a dynamic game where an expert sends probabilistic forecasts to a decision-maker. The decision-maker verifies these forecasts using a calibration test based on past data. How should the expert send forecasts to maximize her payoff…

Theoretical Economics · Economics 2026-05-13 Atulya Jain , Vianney Perchet

We consider two-stage robust optimization problems, which can be seen as games between a decision maker and an adversary. After the decision maker fixes part of the solution, the adversary chooses a scenario from a specified uncertainty…

Optimization and Control · Mathematics 2022-01-03 Marc Goerigk , Stefan Lendl , Lasse Wulf

An agent makes decisions based on multiple sources of information. In isolation, each source is well understood, but their correlation is unknown. We study the agent's robustly optimal strategies -- those that give the best possible…

Theoretical Economics · Economics 2024-09-11 Henrique de Oliveira , Yuhta Ishii , Xiao Lin

This paper investigates the investment problem of constructing an optimal no-short sequential portfolio strategy in a market with a latent dependence structure between asset prices and partly unobservable side information, which is often…

Mathematical Finance · Quantitative Finance 2025-01-22 Duy Khanh Lam

A policymaker discloses public information to interacting agents who also acquire costly private information. More precise public information reduces the precision and cost of acquired private information. Considering this effect, what…

Theoretical Economics · Economics 2022-04-08 Takashi Ui

The long-term impact of algorithmic decision making is shaped by the dynamics between the deployed decision rule and individuals' response. Focusing on settings where each individual desires a positive classification---including many…

Computer Science and Game Theory · Computer Science 2019-10-10 Lydia T. Liu , Ashia Wilson , Nika Haghtalab , Adam Tauman Kalai , Christian Borgs , Jennifer Chayes

This survey reviews portfolio choice in settings where investment opportunities are stochastic due to, e.g., stochastic volatility or return predictability. It is explained how to heuristically compute candidate optimal portfolios using…

Portfolio Management · Quantitative Finance 2013-11-08 Ren Liu , Johannes Muhle-Karbe

We study the dynamics of public opinion in a model in which agents change their opinions as a result of random binary encounters if the opinion difference is below their individual thresholds that evolve over time. We ground these…

Physics and Society · Physics 2007-12-10 Gani Aldashev , Timoteo Carletti

In the presence of ambiguity on the driving force of market randomness, we consider the dynamic portfolio choice without any predetermined investment horizon. The investment criteria is formulated as a robust forward performance process,…

Mathematical Finance · Quantitative Finance 2019-04-23 Qian Lin , Xianming Sun , Chao Zhou

This paper investigates optimal portfolio strategies in a market where the drift is driven by an unobserved Markov chain. Information on the state of this chain is obtained from stock prices and expert opinions in the form of signals at…

Portfolio Management · Quantitative Finance 2016-02-03 Rüdiger Frey , Abdelali Gabih , Ralf Wunderlich

How do consultants price expertise? This paper studies a problem of selling information products (expertise) to a buyer (client) who faces decision-making problem under uncertainty. The client is privately informed about the type of…

Theoretical Economics · Economics 2024-05-21 Klajdi Hoxha

Decision making in modern stochastic systems, including e-commerce platforms, financial markets and healthcare systems, has evolved into a multifaceted process that combines information acquisition and adaptive information sources. This…

Optimization and Control · Mathematics 2026-01-07 Renyuan Xu , Thaleia Zariphopoulou , Luhao Zhang

We consider an agent community wishing to decide on several binary issues by means of issue-by-issue majority voting. For each issue and each agent, one of the two options is better than the other. However, some of the agents may be…

Computer Science and Game Theory · Computer Science 2022-07-12 Shiri Alouf-Heffetz , Laurent Bulteau , Edith Elkind , Nimrod Talmon , Nicholas Teh

Decision-changing imitation is a prevalent phenomenon in financial markets, where investors imitate others' decision-changing rates when making their own investment decisions. In this work, we study the optimal investment problem under the…

Systems and Control · Electrical Eng. & Systems 2024-10-07 Huisheng Wang , H. Vicky Zhao

The aim of this work consists in the study of the optimal investment strategy for a behavioural investor, whose preference towards risk is described by both a probability distortion and an S-shaped utility function. Within a continuous-time…

Portfolio Management · Quantitative Finance 2013-04-30 Miklos Rasonyi , Andrea M. Rodrigues

A discourse strategy is a strategy for communicating with another agent. Designing effective dialogue systems requires designing agents that can choose among discourse strategies. We claim that the design of effective strategies must take…

cmp-lg · Computer Science 2016-08-31 Marilyn A. Walker

Robust optimization is a popular paradigm for modeling and solving two- and multi-stage decision-making problems affected by uncertainty. In many real-world applications, the time of information discovery is decision-dependent and the…

Optimization and Control · Mathematics 2022-08-24 Phebe Vayanos , Angelos Georghiou , Han Yu

To successfully navigate its environment, an agent must construct and maintain representations of the other agents that it encounters. Such representations are useful for many tasks, but they are not without cost. As a result, agents must…

Artificial Intelligence · Computer Science 2023-12-11 Max Taylor-Davies , Christopher G. Lucas

An agent has access to multiple information sources, each of which provides information about a different attribute of an unknown state. Information is acquired continuously -- where the agent chooses both which sources to sample from, and…

Theoretical Economics · Economics 2021-04-27 Annie Liang , Xiaosheng Mu , Vasilis Syrgkanis

This paper focuses on managing the cost of deliberation before action. In many problems, the overall quality of the solution reflects costs incurred and resources consumed in deliberation as well as the cost and benefit of execution, when…

Artificial Intelligence · Computer Science 2013-04-05 David Einav , Michael R. Fehling