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An agent acquires information dynamically until her belief about a binary state reaches an upper or lower threshold. She can choose any signal process subject to a constraint on the rate of entropy reduction. Strategies are ordered by "time…

Theoretical Economics · Economics 2024-08-23 Daniel Chen , Weijie Zhong

A principal who values an object allocates it to one or more agents. Agents learn private information (signals) from an information designer about the allocation payoff to the principal. Monetary transfer is not available but the principal…

Theoretical Economics · Economics 2022-10-31 Yi-Chun Chen , Gaoji Hu , Xiangqian Yang

Our work aims to minimize interaction in secure computation due to the high cost and challenges associated with communication rounds, particularly in scenarios with many clients. In this work, we revisit the problem of secure aggregation in…

Cryptography and Security · Computer Science 2025-11-18 Harish Karthikeyan , Antigoni Polychroniadou

We consider the problem of optimal dynamic information acquisition from many correlated information sources. Each period, the decision-maker jointly takes an action and allocates a fixed number of observations across the available sources.…

Computer Science and Game Theory · Computer Science 2018-05-15 Annie Liang , Xiaosheng Mu , Vasilis Syrgkanis

This paper studies a durable goods monopoly with multiple provision levels, free disposability, and zero marginal cost. We establish a Folk-Theorem-type result: as parties become sufficiently patient, equilibrium seller payoffs contains an…

Theoretical Economics · Economics 2026-03-03 Zihao Li

The price of a stock will rarely follow the assumed model and a curious investor or a Regulatory Authority may wish to obtain a probability model the prices support. A risk neutral probability ${\cal P}^*$ for the stock's price at time $T$…

General Finance · Quantitative Finance 2015-06-23 Yannis G. Yatracos

Traditional economic models typically treat private information, or signals, as generated from some underlying state. Recent work has explicated alternative models, where signals correspond to interpretations of available information. We…

Computer Science and Game Theory · Computer Science 2012-02-20 Michael P. Wellman , Lu Hong , Scott E. Page

This paper studies the information theoretic secure aggregation problem in a three-layer hierarchical network with arbitrary heterogeneous data assignment, where clustered users communicate with an aggregation server through an intermediate…

Information Theory · Computer Science 2026-04-15 Chenyi Sun , Ziting Zhang , Kai Wan , Xiang Zhang

In this paper, we consider the pricing and hedging of a financial derivative for an insider trader, in a model-independent setting. In particular, we suppose that the insider wants to act in a way which is independent of any modelling…

Mathematical Finance · Quantitative Finance 2020-06-25 Beatrice Acciaio , Alexander M. G. Cox , Martin Huesmann

We offer a new approach to the information decomposition problem in information theory: given a 'target' random variable co-distributed with multiple 'source' variables, how can we decompose the mutual information into a sum of non-negative…

Information Theory · Computer Science 2019-10-15 Nihat Ay , Daniel Polani , Nathaniel Virgo

Noise traders can be dispensed with entirely. Partial revelation of information through prices arises under any non-exponential expected utility preference, including CRRA, without noise traders, random endowments, supply shocks, hedging…

Theoretical Economics · Economics 2026-05-12 Mattthijs Breugem

We introduce a new general framework for constructing the best trading strategy for a given historical indicator. We construct the unique trading strategy with the highest expected return. This optimal strategy may be implemented directly,…

Portfolio Management · Quantitative Finance 2011-08-04 Philip Z. Maymin , Zakhar G. Maymin

Networks of companies can be constructed by using return correlations. A crucial issue in this approach is to select the relevant correlations from the correlation matrix. In order to study this problem, we start from an empty graph with no…

Statistical Mechanics · Physics 2009-11-10 J. -P. Onnela , K. Kaski , J. Kertesz

The traditional approach to the quantitative study of segregation is to employ indices that are selected by ``desirable properties''. Here, we detail how information theory underpins entropy-based indices and demonstrate how desirable…

Physics and Society · Physics 2022-12-15 Boris Barron , Yunus A. Kinkhabwala , Chriss Hess , Matthew Hall , Itai Cohen , Tomás A. Arias

An information agent is viewed as a deductive database consisting of 3 parts: an observation database containing the facts the agent has observed or sensed from its surrounding environment, an input database containing the information the…

Logic in Computer Science · Computer Science 2007-05-23 Phan Minh Dung , Do Duc Hanh , Phan Minh Thang

In the context of a general semimartingale model of a complete market, we aim at answering the following question: How much is an investor willing to pay for learning some inside information that allows to achieve arbitrage? If such a value…

Mathematical Finance · Quantitative Finance 2020-04-28 Huy N. Chau , Andrea Cosso , Claudio Fontana

We study strategic interactions in a broker-mediated market in which agents learn and exploit each other's private information. A broker provides liquidity to an informed trader and to noise traders while managing inventory in a lit market.…

Trading and Market Microstructure · Quantitative Finance 2026-01-21 Alif Aqsha , Fayçal Drissi , Leandro Sánchez-Betancourt

Gathering training data is a key step of any supervised learning task, and it is both critical and expensive. Critical, because the quantity and quality of the training data has a high impact on the performance of the learned function.…

Data Structures and Algorithms · Computer Science 2021-10-28 Quentin Lutz , Élie de Panafieu , Alex Scott , Maya Stein

This paper studies the problem of information theoretic secure communication when a source has private messages to transmit to $m$ destinations, in the presence of a passive adversary who eavesdrops an unknown set of $k$ edges. The…

Information Theory · Computer Science 2019-04-12 Gaurav Kumar Agarwal , Martina Cardone , Christina Fragouli

Information Theory provides a fundamental basis for analysis, and for a variety of subsequent methodological approaches, in relation to uncertainty quantification. The transversal character of concepts and derived results justifies its…

Statistics Theory · Mathematics 2024-11-27 Jose M. Angulo , Francisco J. Esquivel , Ana E. Madrid , Francisco J. Alonso