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Trading markets represent a real-world financial application to deploy reinforcement learning agents, however, they carry hard fundamental challenges such as high variance and costly exploration. Moreover, markets are inherently a…

Machine Learning · Computer Science 2021-07-20 Yue Gao , Kry Yik Chau Lui , Pablo Hernandez-Leal

Progress in machine learning is measured by careful evaluation on problems of outstanding common interest. However, the proliferation of benchmark suites and environments, adversarial attacks, and other complications has diluted the basic…

Machine Learning · Computer Science 2018-11-01 David Balduzzi , Karl Tuyls , Julien Perolat , Thore Graepel

We introduce a new mean-field game framework to analyze the impact of carbon pricing in a multi-sector economy with defaultable firms. Each sector produces a homogeneous good, with its price endogenously determined through market clearing.…

General Economics · Economics 2025-07-16 Zorana Grbac , Simone Pavarana , Thorsten Schmidt , Peter Tankov

Multiagent learning is a necessary yet challenging problem as multiagent systems become more prevalent and environments become more dynamic. Much of the groundbreaking work in this area draws on notable results from game theory, in…

Multiagent Systems · Computer Science 2011-07-04 M. Bowling , M. Veloso

Over the past decade, the number of wildfire has increased significantly around the world, especially in the State of California. The high-level concentration of greenhouse gas (GHG) emitted by wildfires aggravates global warming that…

Machine Learning · Computer Science 2021-08-23 Sifat Chowdhury , Kai Zhu , Yu Zhang

Even when confronted with the same data, agents often disagree on a model of the real-world. Here, we address the question of how interacting heterogenous agents, who disagree on what model the real-world follows, optimize their trading…

Mathematical Finance · Quantitative Finance 2019-12-13 Philippe Casgrain , Sebastian Jaimungal

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

Mean field type games (MFTGs) describe Nash equilibria between large coalitions: each coalition consists of a continuum of cooperative agents who maximize the average reward of their coalition while interacting non-cooperatively with a…

Computer Science and Game Theory · Computer Science 2025-07-29 Kai Shao , Jiacheng Shen , Mathieu Laurière

We apply Reinforcement Learning algorithms to solve the classic quantitative finance Market Making problem, in which an agent provides liquidity to the market by placing buy and sell orders while maximizing a utility function. The optimal…

Machine Learning · Computer Science 2021-04-12 Matias Selser , Javier Kreiner , Manuel Maurette

Addressing global challenges such as greenhouse gas emissions and resource inequity demands advanced AI-driven coordination among autonomous agents. We propose CH-MARL (Constrained Hierarchical Multiagent Reinforcement Learning), a novel…

Artificial Intelligence · Computer Science 2025-02-05 Saad Alqithami

In the study of reactive systems, qualitative properties are usually easier to model and analyze than quantitative properties. This is especially true in systems where mutually beneficial cooperation between agents is possible, such as…

Computer Science and Game Theory · Computer Science 2023-05-18 Senthil Rajasekaran , Suguman Bansal , Moshe Y. Vardi

This paper investigates the efficiency loss in social cost caused by strategic bidding behavior of individual participants in a supply-demand balancing market, and proposes a mechanism to fully recover equilibrium social optimum via…

Optimization and Control · Mathematics 2021-06-22 Kaiying Lin , Beibei Wang , Pengcheng You

We investigate stochastic utility maximization games under relative performance concerns in both finite-agent and infinite-agent (graphon) settings. An incomplete market model is considered where agents with power (CRRA) utility functions…

Optimization and Control · Mathematics 2024-12-05 Zongxia Liang , Keyu Zhang , Yaqi Zhuang

In this paper, reinforcement learning is applied to the problem of optimizing market making. A multi-agent reinforcement learning framework is used to optimally place limit orders that lead to successful trades. The framework consists of…

Trading and Market Microstructure · Quantitative Finance 2018-12-27 Yagna Patel

Machine Learning models are increasingly used in businesses to detect faults and anomalies in complex systems. In this work, we take this approach a step further: beyond merely detecting anomalies, we aim to identify the optimal control…

Systems and Control · Electrical Eng. & Systems 2025-07-15 Emilio Carrizosa , Martina Fischetti , Roshell Haaker , Juan Miguel Morales

This paper proposes enhancements to the RICE-N simulation and multi-agent reinforcement learning framework to improve the realism of international climate policy negotiations. Acknowledging the framework's value, we highlight the necessity…

Computers and Society · Computer Science 2023-07-27 Jobst Heitzig , Jörg Oechssler , Christoph Pröschel , Niranjana Ragavan , Richie YatLong Lo

This paper provides a framework for modeling financial contagion in a network subject to fire sales and price impacts, but allowing for firms to borrow to cover their shortfall as well. We consider both uncollateralized and collateralized…

Mathematical Finance · Quantitative Finance 2018-10-02 Maxim Bichuch , Zachary Feinstein

The energy transition potentially poses an existential risk for major international oil companies (IOCs) if they fail to adapt to low-carbon business models. Projections of energy futures, however, are met with diverging assumptions on its…

We investigate the optimal regulation of energy production in alignment with the long-term goals of the Paris Climate Agreement. We analyze the optimal regulatory incentives to foster the development of non-emissive electricity generation…

General Economics · Economics 2025-02-11 René Aïd , Annika Kemper , Nizar Touzi

We address in this paper Reinforcement Learning (RL) among agents that are grouped into teams such that there is cooperation within each team but general-sum (non-zero sum) competition across different teams. To develop an RL method that…

Machine Learning · Computer Science 2025-02-11 Muhammad Aneeq uz Zaman , Alec Koppel , Mathieu Laurière , Tamer Başar