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One approach to reducing greenhouse gas (GHG) emissions is to incentivize carbon capturing and carbon reducing projects while simultaneously penalising excess GHG output. In this work, we present a novel market framework and characterise…

General Finance · Quantitative Finance 2024-06-19 Liam Welsh , Sebastian Jaimungal

We develop a financial market model in which a large population of firms chooses dynamic emission strategies under climate transition risk, interacting with both environmentally concerned and neutral investors. Firms face a trade-off…

Mathematical Finance · Quantitative Finance 2026-02-24 Pierre Lavigne , Peter Tankov

We formulate computation offloading as a decentralized decision-making problem with autonomous agents. We design an interaction mechanism that incentivizes agents to align private and system goals by balancing between competition and…

Multiagent Systems · Computer Science 2022-06-22 Jing Tan , Ramin Khalili , Holger Karl , Artur Hecker

Climate Change is an incredibly complicated problem that humanity faces. When many variables interact with each other, it can be difficult for humans to grasp the causes and effects of the very large-scale problem of climate change. The…

Machine Learning · Computer Science 2022-12-01 Theodore Wolf

The use of reinforcement learning algorithms in financial trading is becoming increasingly prevalent. However, the autonomous nature of these algorithms can lead to unexpected outcomes that deviate from traditional game-theoretical…

Trading and Market Microstructure · Quantitative Finance 2026-02-16 Fabrizio Lillo , Andrea Macrì

Here, we develop a deep learning algorithm for solving Principal-Agent (PA) mean field games with market-clearing conditions -- a class of problems that have thus far not been studied and one that poses difficulties for standard numerical…

Machine Learning · Computer Science 2021-10-05 Steven Campbell , Yichao Chen , Arvind Shrivats , Sebastian Jaimungal

In this paper, we analyze Nash equilibria between electricity producers selling their production on an electricity market and buying CO2 emission allowances on an auction carbon market. The producers' strategies integrate the coupling of…

Mathematical Finance · Quantitative Finance 2015-01-15 Mireille Bossy , Nadia Maizi , Odile Pourtallier

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

We present a new combined \textit{mean field control game} (MFCG) problem which can be interpreted as a competitive game between collaborating groups and its solution as a Nash equilibrium between groups. Players coordinate their strategies…

Optimization and Control · Mathematics 2023-02-16 Andrea Angiuli , Nils Detering , Jean-Pierre Fouque , Mathieu Lauriere , Jimin Lin

This paper establishes a new and comprehensive theoretical analysis for the application of reinforcement learning (RL) in high-frequency market making. We bridge the modern RL theory and the continuous-time statistical models in…

Trading and Market Microstructure · Quantitative Finance 2024-08-13 Yuheng Zheng , Zihan Ding

The most serious threat to ecosystems is the global climate change fueled by the uncontrolled increase in carbon emissions. In this project, we use mean field control and mean field game models to analyze and inform the decisions of…

Optimization and Control · Mathematics 2021-07-06 Rene Carmona , Gokce Dayanikli , Mathieu Lauriere

Principal agent games are a growing area of research which focuses on the optimal behaviour of a principal and an agent, with the former contracting work from the latter, in return for providing a monetary award. While this field…

Mathematical Finance · Quantitative Finance 2022-06-28 Dena Firoozi , Arvind V Shrivats , Sebastian Jaimungal

In this paper, we consider the problem of learning a generalized Nash equilibrium (GNE) in strongly monotone games. First, we propose a novel continuous-time solution algorithm that uses regular projections and first-order information. As…

Systems and Control · Electrical Eng. & Systems 2020-07-23 Suad Krilašević , Sergio Grammatico

The modelling of modern power markets requires the representation of the following main features: (i) a stochastic dynamic decision process, with uncertainties related to renewable production and fuel costs, among others; and (ii) a…

Optimization and Control · Mathematics 2019-10-10 Joaquim Dias Garcia , Raphael Chabar

In this tutorial, we provide an introduction to machine learning methods for finding Nash equilibria in games with large number of agents. These types of problems are important for the operations research community because of their…

Optimization and Control · Mathematics 2024-06-18 Gokce Dayanikli , Mathieu Lauriere

We consider a continuum of carbon-emitting firms who seek to maximise their stock price, and a regulator (e.g., Government) who wishes for the economy to flourish, whilst simultaneously punishing firms who behave non-green. Interpreting the…

Probability · Mathematics 2025-03-11 Anna Aksamit , Kaustav Das , Ivan Guo , Kihun Nam , Zhou Zhou

Most of the current game-theoretic demand-side management methods focus primarily on the scheduling of home appliances, and the related numerical experiments are analyzed under various scenarios to achieve the corresponding Nash-equilibrium…

Computers and Society · Computer Science 2019-02-26 Jun Hao

Forecast reconciliation is considered an effective method to achieve coherence (within a forecast hierarchy) and to improve forecast quality. However, the value of reconciled forecasts in downstream decision-making tasks has been mostly…

Machine Learning · Statistics 2025-12-02 Honglin Wen , Pierre Pinson

We formulate offloading of computational tasks from a dynamic group of mobile agents (e.g., cars) as decentralized decision making among autonomous agents. We design an interaction mechanism that incentivizes such agents to align private…

Multiagent Systems · Computer Science 2022-08-11 Jing Tan , Ramin Khalili , Holger Karl , Artur Hecker

Many large-scale platforms and networked control systems have a centralized decision maker interacting with a massive population of agents under strict observability constraints. Motivated by such applications, we study a cooperative Markov…

Multiagent Systems · Computer Science 2026-05-12 Emile Anand , Ishani Karmarkar
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