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I study a model of advisors with hidden motives: a seller discloses information about an object's value to a potential buyer, who doesn't know the object's value or how profitable the object's sale is to the seller (the seller's motives). I…

Theoretical Economics · Economics 2023-05-08 Paula Onuchic

We model an informed agent with information about the future value of an asset trying to maximize profits when subjected to a transaction cost as well as a market maker tasked with setting fair transaction prices. In a single auction model,…

Trading and Market Microstructure · Quantitative Finance 2020-07-29 Weston Barger , Ryan Donnelly

We analyze digital markets where a monopolist platform uses data to match multiproduct sellers with heterogeneous consumers who can purchase both on and off the platform. The platform sells targeted ads to sellers that recommend their…

Theoretical Economics · Economics 2023-04-18 Dirk Bergemann , Alessandro Bonatti

In this paper, we study platforms where resources and jobs are spatially distributed, and resources have the flexibility to strategically move to different locations for better payoffs. The price of the service at each location depends on…

Computer Science and Game Theory · Computer Science 2023-07-18 Ozan Candogan , Manxi Wu

As a firm varies the price of a product, consumers exhibit reference effects, making purchase decisions based not only on the prevailing price but also the product's price history. We consider the problem of learning such behavioral…

Computer Science and Game Theory · Computer Science 2017-08-31 Abbas Kazerouni , Benjamin Van Roy

Consider a network design application where we wish to lay down a minimum-cost spanning tree in a given graph; however, we only have stochastic information about the edge costs. To learn the precise cost of any edge, we have to conduct a…

Data Structures and Algorithms · Computer Science 2017-11-02 Sahil Singla

We propose a simple market model where agents trade different types of products with each other by using money, relying only on local information. Value fluctuations of single products, combined with the condition of maximum profit in…

Condensed Matter · Physics 2015-06-24 Raul Donangelo , Alex Hansen , Kim Sneppen , Sergio R. Souza

Bilateral bargaining under incomplete information provides a controlled testbed for evaluating large language model (LLM) agent capabilities. Bilateral trade demands individual rationality, strategic surplus maximization, and cooperation to…

Computer Science and Game Theory · Computer Science 2026-04-21 Dirk Bergemann , Soheil Ghili , Xinyang Hu , Chuanhao Li , Zhuoran Yang

In many settings, multiple uninformed agents bargain simultaneously with a single informed agent in each of multiple periods. For example, workers and firms negotiate each year over salaries, and the firm has private information about the…

Theoretical Economics · Economics 2020-11-10 Quitzé Valenzuela-Stookey

We consider stopping problems in which a decision maker (DM) faces an unknown state of nature and decides sequentially whether to stop and take an irreversible action; pay a fee and obtain additional information; or wait without acquiring…

Theoretical Economics · Economics 2022-05-16 Ehud Lehrer , Tao Wang

We investigate the mechanism design problem faced by a principal who hires \emph{multiple} agents to gather and report costly information. Then, the principal exploits the information to make an informed decision. We model this problem as a…

Computer Science and Game Theory · Computer Science 2023-07-13 Federico Cacciamani , Matteo Castiglioni , Nicola Gatti

We study the optimal pricing strategies of a monopolist selling a divisible good (service) to consumers that are embedded in a social network. A key feature of our model is that consumers experience a (positive) local network effect. In…

Computer Science and Game Theory · Computer Science 2011-01-31 Ozan Candogan , Kostas Bimpikis , Asuman Ozdaglar

Opponent modeling consists in modeling the strategy or preferences of an agent thanks to the data it provides. In the context of automated negotiation and with machine learning, it can result in an advantage so overwhelming that it may…

Artificial Intelligence · Computer Science 2017-01-02 Cédric Buron , Sylvain Ductor , Zahia Guessoum

We study a data pricing problem, where a seller has access to $N$ homogeneous data points (e.g. drawn i.i.d. from some distribution). There are $m$ types of buyers in the market, where buyers of the same type $i$ have the same valuation…

Machine Learning · Computer Science 2024-11-05 Keran Chen , Joon Suk Huh , Kirthevasan Kandasamy

We consider sequential search by an agent who cannot observe the quality of goods but can acquire information by buying signals from a profit-maximizing principal with limited commitment power. The principal can charge higher prices for…

Theoretical Economics · Economics 2024-08-13 Teddy Mekonnen , Zeky Murra-Anton , Bobak Pakzad-Hurson

This research proposes a novel auction mechanism for transactive energy exchange between buyers and sellers, modeled as agents in a microgrid. The mechanism is implemented by a separate microgrid controller (MC) agent, and requires big data…

Computer Science and Game Theory · Computer Science 2016-08-15 M. Nazif Faqiry , Sanjoy Das

We study a cheap-talk game where two experts first choose what information to acquire and then offer advice to a decision-maker whose actions affect the welfare of all. The experts cannot commit to reporting strategies. Yet, we show that…

Theoretical Economics · Economics 2021-04-08 Alp Atakan , Mehmet Ekmekci , Ludovic Renou

We propose indifference pricing to estimate the value of the weak information. Our framework allows for tractability, quantifying the amount of additional information, and permits the description of the smallness and the stability with…

Mathematical Finance · Quantitative Finance 2024-08-06 Fabrice Baudoin , Oleksii Mostovyi

In markets where algorithmic data processing is increasingly prevalent, recommendation algorithms can substantially affect trade and welfare. We consider a setting in which an algorithm recommends a product based on its value to the buyer…

Theoretical Economics · Economics 2025-06-17 Shota Ichihashi , Alex Smolin

In many real-world scenarios, experts must convey complex information with limited message capacity. This paper explores how the availability of messages influences an expert's persuasive ability. We develop a geometric representation of…

Theoretical Economics · Economics 2024-05-09 Yunus C. Aybas , Eray Turkel