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Market participants regularly send bid and ask quotes to exchange-operated limit order books. This creates an optimization challenge where their potential profit is determined by their quoted price and how often their orders are…

Mathematical Finance · Quantitative Finance 2025-04-16 Chutian Ma , Giacinto Paolo Saggese , Paul Smith

A speculator can take advantage of a procurement auction by acquiring items for sale before the auction. The accumulated market power can then be exercised in the auction and may lead to a large enough gain to cover the acquisition costs. I…

Theoretical Economics · Economics 2026-01-29 Shanglyu Deng

We show that Execution Tickets and Execution Auctions dramatically increase centralization in the market for block proposals, even without multi-block MEV concerns. Previous analyses have insufficiently or incorrectly modeled the…

Theoretical Economics · Economics 2024-08-07 Mallesh Pai , Max Resnick

We introduce a general framework for continuous-time betting markets, in which a bookmaker can dynamically control the prices of bets on outcomes of random events. In turn, the prices set by the bookmaker affect the rate or intensity of…

Mathematical Finance · Quantitative Finance 2021-03-09 Matthew Lorig , Zhou Zhou , Bin Zou

We consider an optimal trading problem over a finite period of time during which an investor has access to both a standard exchange and a dark pool. We take the exchange to be an order-driven market and propose a continuous-time setup for…

Mathematical Finance · Quantitative Finance 2016-01-13 M. Alessandra Crisafi , Andrea Macrina

We first investigate the evolution of opening and closing auctions volumes of US equities along the years. We then report dynamical properties of pre-auction periods: the indicative match price is strongly mean-reverting because the…

Trading and Market Microstructure · Quantitative Finance 2018-10-08 Damien Challet , Nikita Gourianov

Small operators who take part in secondary wireless spectrum markets typically have strict budget limits. In this paper, we study the bidding problem of a budget constrained operator in repeated secondary spectrum auctions. In existing…

Networking and Internet Architecture · Computer Science 2016-08-29 Mehrdad Khaledi , Alhussein Abouzeid

Internet search companies sell advertisement slots based on users' search queries via an auction. While there has been a lot of attention on the auction process and its game-theoretic aspects, our focus is on the advertisers. In particular,…

Data Structures and Algorithms · Computer Science 2007-05-23 Jon Feldman , S. Muthukrishnan , Martin Pal , Cliff Stein

Trailing stop is a popular stop-loss trading strategy by which the investor will sell the asset once its price experiences a pre-specified percentage drawdown. In this paper, we study the problem of timing buy and then sell an asset subject…

Mathematical Finance · Quantitative Finance 2019-03-26 Tim Leung , Hongzhong Zhang

Motivated by pricing in ad exchange markets, we consider the problem of robust learning of reserve prices against strategic buyers in repeated contextual second-price auctions. Buyers' valuations for an item depend on the context that…

Machine Learning · Computer Science 2020-02-27 Negin Golrezaei , Adel Javanmard , Vahab Mirrokni

This paper extends the incomplete model of Haile and Tamer (2003) from static English auctions to sequential English auctions. Because bidders may wait for future opportunities, the static condition that bidders do not let rivals win at…

Econometrics · Economics 2026-05-15 Dongwoo Kim , Kyoo il Kim , Pallavi Pal

Ads on the Internet are increasingly sold via ad exchanges such as RightMedia, AdECN and Doubleclick Ad Exchange. These exchanges allow real-time bidding, that is, each time the publisher contacts the exchange, the exchange ``calls out'' to…

Computer Science and Game Theory · Computer Science 2015-03-13 Tanmoy Chakraborty , Eyal Even-Dar , Sudipto Guha , Yishay Mansour , S. Muthukrishnan

We investigate approximately optimal mechanisms in settings where bidders' utility functions are non-linear; specifically, convex, with respect to payments (such settings arise, for instance, in procurement auctions for energy). We provide…

Computer Science and Game Theory · Computer Science 2017-02-23 Amy Greenwald , Takehiro Oyakawa , Vasilis Syrgkanis

Investigating potential purchases is often a substantial investment under uncertainty. Standard market designs, such as simultaneous or English auctions, compound this with uncertainty about the price a bidder will have to pay in order to…

Computer Science and Game Theory · Computer Science 2016-12-22 Robert Kleinberg , Bo Waggoner , E. Glen Weyl

In this work, we study spectrum auction problem where each request from secondary users has spatial, temporal, and spectral features. With the requests of secondary users and the reserve price of the primary user, our goal is to design…

Networking and Internet Architecture · Computer Science 2013-05-29 Yu-e Sun , He Huang , Xiang-Yang Li , Zhili Chen , Wei Yang , Hongli Xu , Liusheng Huang

We study the problem of regret minimization for a single bidder in a sequence of first-price auctions where the bidder discovers the item's value only if the auction is won. Our main contribution is a complete characterization, up to…

Computer Science and Game Theory · Computer Science 2024-09-04 Nicolò Cesa-Bianchi , Tommaso Cesari , Roberto Colomboni , Federico Fusco , Stefano Leonardi

Online double auctions (DAs) model a dynamic two-sided matching problem with private information and self-interest, and are relevant for dynamic resource and task allocation problems. We present a general method to design truthful DAs, such…

Computer Science and Game Theory · Computer Science 2012-07-09 Jonathan Bredin , David C. Parkes

As autobidding systems increasingly dominate online advertising auctions, characterizing their long-term dynamical behavior is brought to the fore. In this paper, we examine the dynamics of autobidders who optimize value subject to a…

Computer Science and Game Theory · Computer Science 2026-02-11 Ioannis Anagnostides , Ian Gemp , Georgios Piliouras , Kelly Spendlove

In this work we study the optimal execution problem with multiplicative price impact in algorithm trading, when an agent holds an initial position of shares of a financial asset. The inter-selling-decision times are modelled by the arrival…

Mathematical Finance · Quantitative Finance 2018-05-04 Daniel Hernández-Hernández , Harold A. Moreno-Franco , José Luis Pérez

Constant price impact functions, much used in financial literature, are shown to give rise to paradoxical outcomes since they do not allow for proper predictability removal: for instance the exploitation of a single large trade whose size…

Physics and Society · Physics 2010-01-27 Damien Challet
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