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Related papers: Algorithmic Collusion Without Threats

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In an infinitely repeated general-sum pricing game, independent reinforcement learners may exhibit collusive behavior without any communication, raising concerns about algorithmic collusion. To better understand the learning dynamics, we…

General Economics · Economics 2025-10-07 Bingyan Han

We build on an emerging line of work which studies strategic manipulations in training data provided to machine learning algorithms. Specifically, we focus on the ubiquitous task of linear regression. Prior work focused on the design of…

Computer Science and Game Theory · Computer Science 2020-07-16 Safwan Hossain , Nisarg Shah

Prediction is a well-studied machine learning task, and prediction algorithms are core ingredients in online products and services. Despite their centrality in the competition between online companies who offer prediction-based products,…

Computer Science and Game Theory · Computer Science 2019-05-09 Omer Ben-Porat , Moshe Tennenholtz

We present an extensive analysis of the key problem of learning optimal reserve prices for generalized second price auctions. We describe two algorithms for this task: one based on density estimation, and a novel algorithm benefiting from…

Machine Learning · Computer Science 2015-06-10 Mehryar Mohri , Andres Munoz Medina

We study a game with \emph{strategic} vendors who own multiple items and a single buyer with a submodular valuation function. The goal of the vendors is to maximize their revenue via pricing of the items, given that the buyer will buy the…

Computer Science and Game Theory · Computer Science 2014-08-04 Omer Lev , Joel Oren , Craig Boutilier , Jeffery S. Rosenschein

In many game-theoretic settings, agents are challenged with taking decisions against the uncertain behavior exhibited by others. Often, this uncertainty arises from multiple sources, e.g., incomplete information, limited computation,…

Computer Science and Game Theory · Computer Science 2025-07-22 Nicolas Lanzetti , Sylvain Fricker , Saverio Bolognani , Florian Dörfler , Dario Paccagnan

I prove that competitive market outcomes require computational intractability. If P = NP, firms can efficiently solve the collusion detection problem, identifying deviations from cooperative agreements in complex, noisy markets and thereby…

Computer Science and Game Theory · Computer Science 2026-02-25 Philip Z. Maymin

The connection between games and no-regret algorithms has been widely studied in the literature. A fundamental result is that when all players play no-regret strategies, this produces a sequence of actions whose time-average is a…

Computer Science and Game Theory · Computer Science 2020-09-15 Zhe Feng , Guru Guruganesh , Christopher Liaw , Aranyak Mehta , Abhishek Sethi

We study collaborative learning systems in which the participants are competitors who will defect from the system if they lose revenue by collaborating. As such, we frame the system as a duopoly of competitive firms who are each engaged in…

Computer Science and Game Theory · Computer Science 2024-06-25 Mariel Werner , Sai Praneeth Karimireddy , Michael I. Jordan

This paper presents a multi-agent reinforcement learning algorithm to represent strategic bidding behavior in freight transport markets. Using this algorithm, we investigate whether feasible market equilibriums arise without any central…

Machine Learning · Computer Science 2021-02-19 Wouter van Heeswijk

The notion that economies should normally be in equilibrium is by now well-established; equally well-established is that economies are almost never precisely in equilibrium. Using a very general formulation, we show that under dynamics that…

General Finance · Quantitative Finance 2012-02-28 Eric Kemp-Benedict

We introduce pricing formulas for competition and collusion models of two-sided markets with an outside option. For the competition model, we find conditions under which prices and consumer surplus may increase or decrease if the outside…

General Economics · Economics 2025-05-12 Cristian Chica , Yinglong Guo , Gilad Lerman

We consider a simple model of rational agents competing in a single product market described by simple linear demand curve. Contrary to accepted economic theory, the agents' production levels synchronise in the absence of conscious…

Adaptation and Self-Organizing Systems · Physics 2008-12-02 Russell K. Standish , Steve Keen

We study the problem of pricing under a Multinomial Logit model where we incorporate network effects over the consumer's decisions. We analyse both cases, when sellers compete or collaborate. In particular, we pay special attention to the…

Computer Science and Game Theory · Computer Science 2020-05-08 Felipe Maldonado , Gerardo Berbeglia , Pascal Van Hentenryck

Platform giants in China have operated with persistently compressed margins in highly concentrated markets for much of the past decade, despite market shares exceeding 60\% in core segments. Standard theory predicts otherwise: either the…

Theoretical Economics · Economics 2026-01-23 Liang Chen

Combinatorial Auctions are a central problem in Algorithmic Mechanism Design: pricing and allocating goods to buyers with complex preferences in order to maximize some desired objective (e.g., social welfare, revenue, or profit). The…

Computer Science and Game Theory · Computer Science 2015-03-19 Avrim Blum , Anupam Gupta , Yishay Mansour , Ankit Sharma

We study a recommendation system where sellers compete for visibility by strategically offering commissions to a platform that optimally curates a ranked menu of items and their respective prices for each customer. Customers interact…

Theoretical Economics · Economics 2025-10-07 Tushar Shankar Walunj , Veeraruna Kavitha , Jayakrishnan Nair , Priyank Agarwal

We study the impact of strategic behavior in labor markets characterized by algorithmic monoculture, where firms compete for a shared pool of applicants using a common algorithmic evaluation. In this setting, "naive" hiring strategies lead…

Computer Science and Game Theory · Computer Science 2026-02-19 Jackie Baek , Hamsa Bastani , Shihan Chen

We consider multi-agent decision making where each agent optimizes its convex cost function subject to individual and coupling constraints. The constraint sets are compact convex subsets of a Euclidean space. To learn Nash equilibria, we…

Optimization and Control · Mathematics 2018-10-16 Tatiana Tatarenko , Maryam Kamgarpour

We study optimal execution in markets with transient price impact in a competitive setting with $N$ traders. Motivated by prior negative results on the existence of pure Nash equilibria, we consider randomized strategies for the traders and…

Trading and Market Microstructure · Quantitative Finance 2026-05-19 Steven Campbell , Marcel Nutz