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We consider infinite horizon dynamic programming problems, where the control at each stage consists of several distinct decisions, each one made by one of several agents. In an earlier work we introduced a policy iteration algorithm, where…

Optimization and Control · Mathematics 2020-05-05 Dimitri Bertsekas

We consider the problem of optimal investment with random endowment in a Black--Scholes market for an agent with constant relative risk aversion. Using duality arguments, we derive an explicit expression for the optimal trading strategy,…

Portfolio Management · Quantitative Finance 2025-06-26 Michael Donisch , Christoph Knochenhauer

Research on promoting cooperation among autonomous, self-regarding agents has often focused on the bi-objective optimisation problem: minimising the total incentive cost while maximising the frequency of cooperation. However, the optimal…

In this paper, we consider a robust action selection problem in multi-agent systems where performance must be guaranteed when the system suffers a worst-case attack on its agents. Specifically, agents are tasked with selecting actions from…

Multiagent Systems · Computer Science 2022-06-24 Jun Liu , Ryan K. Williams

We study optimal contract design for large populations of heterogeneous agents whose actions generate network spillovers represented by an interaction function. In a linear-quadratic framework, we solve the finite-agent problem and its…

Theoretical Economics · Economics 2026-05-19 Guillermo Alonso Alvarez , Erhan Bayraktar , Ibrahim Ekren

Interaction strategies for reward in competitive environments are significantly influenced by the nature and extent of available information. In financial markets, particularly foreign exchange (forex), traders operate independently with…

Computational Engineering, Finance, and Science · Computer Science 2024-12-03 Patrick Naivasha , George Musumba , Patrick Gikunda , John Wandeto

Trading large volumes of a financial asset in order driven markets requires the use of algorithmic execution dividing the volume in many transactions in order to minimize costs due to market impact. A proper design of an optimal execution…

Trading and Market Microstructure · Quantitative Finance 2015-06-05 Enzo Busseti , Fabrizio Lillo

As AI usage becomes more prevalent in social contexts, understanding agent-user interaction is critical to designing systems that improve both individual and group outcomes. We present an online behavioral experiment (N = 243) in which…

Computer Science and Game Theory · Computer Science 2026-02-16 Kehang Zhu , Nithum Thain , Vivian Tsai , James Wexler , Crystal Qian

Many robotic applications involve interactions between multiple agents where an agent's decisions affect the behavior of other agents. Such behaviors can be captured by the equilibria of differential games which provide an expressive…

Robotics · Computer Science 2021-07-13 Talha Kavuncu , Ayberk Yaraneri , Negar Mehr

The central result of this paper is the analysis of an optimization problem which allows one to assess the limiting performance of a team of two agents who coordinate their actions. One agent is fully informed about the past and future…

Optimization and Control · Mathematics 2014-09-08 Benjamin Larrousse , Achal Agrawal , Samson Lasaulce

Two major financial market complexities are transaction costs and uncertain volatility, and we analyze their joint impact on the problem of portfolio optimization. When volatility is constant, the transaction costs optimal investment…

Portfolio Management · Quantitative Finance 2014-08-28 Maxim Bichuch , Ronnie Sircar

We consider a multi-agent optimal resource sharing problem that is represented by a linear program. The amount of resource to be shared is fixed, and agents belong to a population that is characterized probabilistically so as to allow…

Optimization and Control · Mathematics 2021-09-29 Alessandro Falsone , Kostas Margellos , Jacopo Zizzo , Maria Prandini , Simone Garatti

While many multiagent algorithms are designed for homogeneous systems (i.e. all agents are identical), there are important applications which require an agent to coordinate its actions without knowing a priori how the other agents behave.…

Artificial Intelligence · Computer Science 2019-07-17 Stefano V. Albrecht , Subramanian Ramamoorthy

Consider a multi-agent system in a dynamic and uncertain environment. Each agent's local decision problem is modeled as a Markov decision process (MDP) and agents must coordinate on a joint action in each period, which provides a reward to…

Computer Science and Game Theory · Computer Science 2012-07-02 Ruggiero Cavallo , David C. Parkes , Satinder Singh

The rapid growth of crypto markets has opened new opportunities for investors, but at the same time exposed them to high volatility. To address the challenge of managing dynamic portfolios in such an environment, this paper presents a…

Portfolio Management · Quantitative Finance 2025-07-29 Antonino Castelli , Paolo Giudici , Alessandro Piergallini

Planning for ad hoc teamwork is challenging because it involves agents collaborating without any prior coordination or communication. The focus is on principled methods for a single agent to cooperate with others. This motivates…

Multiagent Systems · Computer Science 2014-09-02 Muthukumaran Chandrasekaran , Prashant Doshi , Yifeng Zeng , Yingke Chen

We consider the learning dynamics of a single reinforcement learning optimal execution trading agent when it interacts with an event driven agent-based financial market model. Trading takes place asynchronously through a matching engine in…

Trading and Market Microstructure · Quantitative Finance 2023-11-23 Matthew Dicks , Andrew Paskaramoorthy , Tim Gebbie

We examine the dynamics of informational efficiency in a market with asymmetrically informed, boundedly rational traders who adaptively learn optimal strategies using simple multiarmed bandit (MAB) algorithms. The strategies available to…

Theoretical Economics · Economics 2024-11-11 Aleksei Pastushkov

Two-sided matchings are an important theoretical tool used to model markets and social interactions. In many real life problems the utility of an agent is influenced not only by their own choices, but also by the choices that other agents…

Computer Science and Game Theory · Computer Science 2012-07-17 Simina Brânzei , Tomasz P. Michalak , Talal Rahwan , Kate Larson , Nicholas R. Jennings

Multi-agent systems are designed to concurrently accomplish a diverse set of tasks at unprecedented scale. Here, the central problems faced by a system operator are to decide (i) how to divide available resources amongst the agents assigned…

Systems and Control · Electrical Eng. & Systems 2021-04-01 Keith Paarporn , Rahul Chandan , Mahnoosh Alizadeh , Jason R. Marden