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Trading large volumes of a financial asset in order driven markets requires the use of algorithmic execution dividing the volume in many transactions in order to minimize costs due to market impact. A proper design of an optimal execution…

Trading and Market Microstructure · Quantitative Finance 2015-06-05 Enzo Busseti , Fabrizio Lillo

Trade-offs between accuracy and efficiency pervade law, public health, and other non-computing domains, which have developed policies to guide how to balance the two in conditions of uncertainty. While computer science also commonly studies…

Computers and Society · Computer Science 2021-10-05 A. Feder Cooper , Karen Levy , Christopher De Sa

Component substitution has numerous practical applications and constitutes an active research topic. This paper proposes to enrich an existing component-based framework--a model with dynamic reconfigurations making the system evolve--with a…

Software Engineering · Computer Science 2014-08-10 Arnaud Lanoix , Olga Kouchnarenko

A large family of diffusive models of transport that has been considered in the past years admits a transformation into the same model in contact with an equilibrium bath. This mapping holds at the full dynamical level, and is independent…

Statistical Mechanics · Physics 2020-10-22 Rouven Frassek , Cristian Giardina , Jorge Kurchan

Modelling and simulation of mixed-traffic zones is an important tool for transportation planners to assess safety, efficiency, and human-friendliness of future urban areas. This paper addresses problems of calibration and transferability of…

Multiagent Systems · Computer Science 2022-03-01 Fatema T. Johora , Jörg P. Müller

The problem of arriving at a principled method of pricing goods and services was very satisfactorily solved for conventional goods; however, this solution is not applicable to digital goods. This paper studies pricing of a special class of…

Computer Science and Game Theory · Computer Science 2012-03-08 Kamal Jain , Vijay Vazirani

Sets of desirable gambles constitute a quite general type of uncertainty model with an interesting geometrical interpretation. We give a general discussion of such models and their rationality criteria. We study exchangeability assessments…

Probability · Mathematics 2010-12-10 Gert de Cooman , Erik Quaeghebeur

Financial markets are a typical example of complex systems where interactions between constituents lead to many remarkable features. Here, we show that a pairwise maximum entropy model (or auto-logistic model) is able to describe switches…

Statistical Finance · Quantitative Finance 2014-01-28 Thomas Bury

Multidimensional combinatorial substitutions are rules that replace symbols by finite patterns of symbols in $\mathbb Z^d$. We focus on the case where the patterns are not necessarily rectangular, which requires a specific description of…

Discrete Mathematics · Computer Science 2014-06-27 Timo Jolivet , Jarkko Kari

We present functional forms allowing a broader range of analytic solutions to common economic equilibrium problems. These can increase the realism of pen-and-paper solutions or speed large-scale numerical solutions as computational…

Economics · Quantitative Finance 2018-08-21 Michal Fabinger , E. Glen Weyl

In both finance and economics, quantitative models are usually studied as isolated mathematical objects --- most often defined by very strong simplifying assumptions concerning rationality, efficiency and the existence of disequilibrium…

General Finance · Quantitative Finance 2010-10-04 Harbir Lamba

We present a possible kind of generalization of the notion of ordered pairs of cyclic maps and coupled fixed points and its application in modelling of equilibrium in oligopoly markets. We have obtained sufficient conditions for the…

Optimization and Control · Mathematics 2020-09-11 Yulia Dzhabarova , Stanimir Kabaivanov , Margarita Ruseva , Boyan Zlatanov

We propose a discrete time formulation of the semi-martingale optimal transport problem based on multi-marginal entropic transport. This approach offers a new way to formulate and solve numerically the calibration problem proposed by [17],…

Optimization and Control · Mathematics 2024-12-03 Jean-David Benamou , Guillaume Chazareix , Grégoire Loeper

The use of models, even if efficient, must be accompanied by an understanding at all levels of the process that transforms data (upstream and downstream). Thus, needs increase to define the relationships between individual data and the…

Machine Learning · Statistics 2022-09-02 Dimitri Delcaillau , Antoine Ly , Alize Papp , Franck Vermet

We introduce a notion of substitutability for correspondences and establish a monotone comparative static result, unifying results such as the inverse isotonicity of M-matrices, Berry, Gandhi and Haile's identification of demand systems,…

Theoretical Economics · Economics 2022-07-15 Alfred Galichon , Larry Samuelson , Lucas Vernet

Many problems give rise to polynomial systems. These systems often have several parameters and we are interested to study how the solutions vary when we change the values for the parameters. Using predictor-corrector methods we track the…

Numerical Analysis · Mathematics 2008-10-01 Kathy Piret , Jan Verschelde

Non-equilibrium steady states are subject to intense investigations but still poorly understood. For instance, the derivation of Fourier law in Hamiltonian systems is a problem that still poses several obstacles. In order to investigate…

Probability · Mathematics 2014-10-15 Chiara Franceschini , Cristian Giardina

In this paper, we study a semi-martingale optimal transport problem and its application to the calibration of Local-Stochastic Volatility (LSV) models. Rather than considering the classical constraints on marginal distributions at initial…

Mathematical Finance · Quantitative Finance 2021-07-22 Ivan Guo , Gregoire Loeper , Shiyi Wang

Multi-fidelity models provide a framework for integrating computational models of varying complexity, allowing for accurate predictions while optimizing computational resources. These models are especially beneficial when acquiring…

Applications · Statistics 2024-05-14 M. Giselle Fernández-Godino

Duality of linear programming is a standard approach to the classical weighted maximum matching problem. From an economic perspective, the dual variables can be regarded as prices of products and payoffs of buyers in a two-sided matching…

Data Structures and Algorithms · Computer Science 2019-12-03 Xiaoming Li , Tao Lin
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