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Deep reinforcement learning (DRL) is a well-suited approach to financial decision-making, where an agent makes decisions based on its trading strategy developed from market observations. Existing DRL intraday trading strategies mainly use…

Trading and Market Microstructure · Quantitative Finance 2024-06-13 Sven Goluža , Tomislav Kovačević , Tessa Bauman , Zvonko Kostanjčar

This paper contributes to the literature on parametric demand estimation by using deep learning to model consumer preferences. Traditional econometric methods often struggle with limited within-product price variation, a challenge addressed…

General Economics · Economics 2024-12-16 Kirill Safonov

In recent years, $Q$-learning has become indispensable for model-free reinforcement learning (MFRL). However, it suffers from well-known problems such as under- and overestimation bias of the value, which may adversely affect the policy…

Machine Learning · Computer Science 2021-02-09 Youngmin Oh , Jinwoo Shin , Eunho Yang , Sung Ju Hwang

Standard reinforcement learning (RL) algorithms assume that the observation of the next state comes instantaneously and at no cost. In a wide variety of sequential decision making tasks ranging from medical treatment to scientific…

Artificial Intelligence · Computer Science 2020-05-27 Colin Bellinger , Rory Coles , Mark Crowley , Isaac Tamblyn

The large variety of digital payment choices available to consumers today has been a key driver of e-commerce transactions in the past decade. Unfortunately, this has also given rise to cybercriminals and fraudsters who are constantly…

Machine Learning · Computer Science 2021-12-09 Siddharth Vimal , Kanishka Kayathwal , Hardik Wadhwa , Gaurav Dhama

This paper introduces an approach to Reinforcement Learning Algorithm by comparing their immediate rewards using a variation of Q-Learning algorithm. Unlike the conventional Q-Learning, the proposed algorithm compares current reward with…

Machine Learning · Computer Science 2010-09-15 Punit Pandey , Deepshikha Pandey , Shishir Kumar

Reinforcement Learning (RL), one of the core paradigms in machine learning, learns to make decisions based on real-world experiences. This approach has significantly advanced AI applications across various domains, notably in smart grid…

Cryptography and Security · Computer Science 2024-02-27 Zheyu Zhang

The framework of deep reinforcement learning (DRL) provides a powerful and widely applicable mathematical formalization for sequential decision-making. This paper present a novel DRL framework, termed \emph{$f$-Divergence Reinforcement…

Machine Learning · Computer Science 2021-12-15 Chen Gong , Qiang He , Yunpeng Bai , Zhou Yang , Xiaoyu Chen , Xinwen Hou , Xianjie Zhang , Yu Liu , Guoliang Fan

Reinforcement learning (RL) algorithms have become indispensable tools in artificial intelligence, empowering agents to acquire optimal decision-making policies through interactions with their environment and feedback mechanisms. This study…

Machine Learning · Computer Science 2024-03-28 Ergon Cugler de Moraes Silva

We employ deep reinforcement learning (RL) to train an agent to successfully translate a high-frequency trading signal into a trading strategy that places individual limit orders. Based on the ABIDES limit order book simulator, we build a…

Trading and Market Microstructure · Quantitative Finance 2023-09-27 Peer Nagy , Jan-Peter Calliess , Stefan Zohren

The development of open benchmarking platforms could greatly accelerate the adoption of AI agents in retail. This paper presents comprehensive simulations of customer shopping behaviors for the purpose of benchmarking reinforcement learning…

Artificial Intelligence · Computer Science 2024-05-20 Yu Xia , Sriram Narayanamoorthy , Zhengyuan Zhou , Joshua Mabry

Medical treatments often involve a sequence of decisions, each informed by previous outcomes. This process closely aligns with reinforcement learning (RL), a framework for optimizing sequential decisions to maximize cumulative rewards under…

Machine Learning · Computer Science 2024-10-15 Ali Shirali , Alexander Schubert , Ahmed Alaa

Compared with model-based control and optimization methods, reinforcement learning (RL) provides a data-driven, learning-based framework to formulate and solve sequential decision-making problems. The RL framework has become promising due…

Systems and Control · Electrical Eng. & Systems 2024-07-29 Pouria Razzaghi , Amin Tabrizian , Wei Guo , Shulu Chen , Abenezer Taye , Ellis Thompson , Alexis Bregeon , Ali Baheri , Peng Wei

This paper presents a novel approach to e-commerce payment fraud detection by integrating reinforcement learning (RL) with Large Language Models (LLMs). By framing transaction risk as a multi-step Markov Decision Process (MDP), RL optimizes…

Machine Learning · Computer Science 2025-09-24 Bo Qu , Zhurong Wang , Daisuke Yagi , Zhen Xu , Yang Zhao , Yinan Shan , Frank Zahradnik

This paper introduces a deep reinforcement learning (RL) framework for optimizing the operations of power plants pairing renewable energy with storage. The objective is to maximize revenue from energy markets while minimizing storage…

Machine Learning · Computer Science 2023-06-16 Lucien Werner , Peeyush Kumar

Demand response (DR) has been demonstrated to be an effective method for reducing peak load and mitigating uncertainties on both the supply and demand sides of the electricity market. One critical question for DR research is how to…

Machine Learning · Computer Science 2023-06-27 Jun Song , Chaoyue Zhao

Recommender Systems are becoming ubiquitous in many settings and take many forms, from product recommendation in e-commerce stores, to query suggestions in search engines, to friend recommendation in social networks. Current research…

Information Retrieval · Computer Science 2018-09-17 David Rohde , Stephen Bonner , Travis Dunlop , Flavian Vasile , Alexandros Karatzoglou

This study investigates how Multi-Agent Reinforcement Learning (MARL) can improve dynamic pricing strategies in supply chains, particularly in contexts where traditional ERP systems rely on static, rule-based approaches that overlook…

Machine Learning · Computer Science 2025-07-04 Thomas Hazenberg , Yao Ma , Seyed Sahand Mohammadi Ziabari , Marijn van Rijswijk

Reinforcement learning (RL) is attracting attention as an effective way to solve sequential optimization problems that involve high dimensional state/action space and stochastic uncertainties. Many such problems involve constraints…

Machine Learning · Computer Science 2021-04-01 Haeun Yoo , Victor M. Zavala , Jay H. Lee

Typical reinforcement learning (RL) methods show limited applicability for real-world industrial control problems because industrial systems involve various constraints and simultaneously require continuous and discrete control. To overcome…

Artificial Intelligence · Computer Science 2021-05-20 Hyungjun Park , Daiki Min , Jong-hyun Ryu , Dong Gu Choi
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