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One of the better studied properties for operators in judgment aggregation is independence, which essentially dictates that the collective judgment on one issue should not depend on the individual judgments given on some other issue(s) in…

Artificial Intelligence · Computer Science 2016-04-25 Jérôme Lang , Marija Slavkovik , Srdjan Vesic

We study the indirect cost of information from sequential information cost minimization. A key sub-additivity condition, together with monotonicity equivalently characterizes the class of indirect cost functions generated from any direct…

Theoretical Economics · Economics 2020-05-01 Weijie Zhong

Information theory provides ideas for conceptualising information and measuring relationships between objects. It has found wide application in the sciences, but economics and finance have made surprisingly little use of it. We show that…

Statistical Finance · Quantitative Finance 2013-05-02 Galen Sher , Pedro Vitoria

Large-scale decentralized learning frameworks such as federated learning (FL), require both communication efficiency and strong data security, motivating the study of secure aggregation (SA). While information-theoretic SA is well…

Information Theory · Computer Science 2026-01-28 Xiang Zhang , Zhou Li , Han Yu , Kai Wan , Hua Sun , Mingyue Ji , Giuseppe Caire

In this paper we extend the theory of option pricing to take into account and explain the empirical evidence for asset prices such as non-Gaussian returns, long-range dependence, volatility clustering, non-Gaussian copula dependence, as…

Mathematical Finance · Quantitative Finance 2017-11-28 Stoyan V. Stoyanov , Yong Shin Kim , Svetlozar T. Rachev , Frank J. Fabozzi

We introduce an interactive market setup with sequential auctions where agents receive variegated signals with a known deadline. The effects of differential information and mutual learning on the allocation of overall profit \& loss (P\&L)…

Mathematical Finance · Quantitative Finance 2016-10-14 N. Serhan Aydin

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

In the robust secure aggregation problem, a server wishes to learn and only learn the sum of the inputs of a number of users while some users may drop out (i.e., may not respond). The identity of the dropped users is not known a priori and…

Information Theory · Computer Science 2021-01-20 Yizhou Zhao , Hua Sun

We create a formal framework for the design of informative securities in prediction markets. These securities allow a market organizer to infer the likelihood of events of interest as well as if he knew all of the traders' private signals.…

Computer Science and Game Theory · Computer Science 2012-10-19 Yiling Chen , Mike Ruberry , Jennifer Wortman Vaughan

We introduce and study several notions of computability-theoretic reducibility between subsets of $\omega$ that are "robust" in the sense that if only partial information is available about the oracle, then partial information can be…

Logic · Mathematics 2014-06-12 Damir Dzhafarov , Gregory Igusa

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

We investigate joint optimization on information acquisition and portfolio selection within a Bayesian adaptive framework. The investor dynamically controls the precision of a private signal and incurs costs while updating her belief about…

Optimization and Control · Mathematics 2025-08-19 Zongxia Liang , Shu Wang , Jianming Xia

Secure aggregation, which is a core component of federated learning, aggregates locally trained models from distributed users at a central server. The ``secure'' nature of such aggregation consists of the fact that no information about the…

Information Theory · Computer Science 2023-02-01 Kai Wan , Xin Yao , Hua Sun , Mingyue Ji , Giuseppe Caire

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

Classic results show that even an arbitrarily small correlation across bidders' information can enable full surplus extraction in auctions and related mechanism design settings. Motivated by this fragility, we study the information…

Computer Science and Game Theory · Computer Science 2026-04-28 Boyu Liu , Wei Tang , Zihe Wang , Shuo Zhang

We consider a monopolistic seller in a market that may be segmented. The surplus of each consumer in a segment depends on the price that the seller optimally charges, which depends on the set of consumers in the segment. We study which…

Theoretical Economics · Economics 2022-10-25 Nima Haghpanah , Ron Siegel

Synthetic data becomes crucial for large language model training, but its effectiveness is highly inconsistent. We provide an information-theoretic account of this inconsistency: synthetic data improves a model only when the…

Machine Learning · Computer Science 2026-05-19 Hanyu Li , Zhengqi Sun , Xiaotie Deng

A seller offers an asset in a decentralised market. Buyers have private signals about their common value. I study whether the market becomes allocatively more efficient with (i) more buyers, (ii) better-informed buyers. Both increase the…

Theoretical Economics · Economics 2025-08-04 D. Carlos Akkar

We consider a class of generalized capital asset pricing models in continuous time with a finite number of agents and tradable securities. The securities may not be sufficient to span all sources of uncertainty. If the agents have…

General Finance · Quantitative Finance 2012-10-23 Ulrich Horst , Michael Kupper , Andrea Macrina , Christoph Mainberger

This paper introduces a framework for modeling the cost of information acquisition based on the principle of cost-minimization. We study the reduced-form \emph{indirect cost} of information generated by the sequential minimization of a…

Theoretical Economics · Economics 2025-11-10 Alexander W. Bloedel , Weijie Zhong