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This note presents the design and analysis of an adaptive controller for a class of linear plants in the presence of output feedback. This controller makes use of a closed-loop reference model as an observer, and guarantees global stability…

Systems and Control · Computer Science 2015-10-20 Travis E. Gibson , Zheng Qu , Anuradha M. Annaswamy , Eugene Lavretsky

An agent-based model with interacting low frequency liquidity takers inter-mediated by high-frequency liquidity providers acting collectively as market makers can be used to provide realistic simulated price impact curves. This is possible…

Trading and Market Microstructure · Quantitative Finance 2021-08-23 Ivan Jericevich , Patrick Chang , Tim Gebbie

The theory of learning in games has extensively studied situations where agents respond dynamically to each other by optimizing a fixed utility function. However, in many settings of interest, agent utility functions themselves vary as a…

Multiagent Systems · Computer Science 2021-10-01 Brandon C. Collins , Lisa Hines , Gia Barboza , Philip N. Brown

We have used agent-based modeling as our numerical method to artificially simulate a dynamic real economy where agents are rational maximizers of an objective function of Cobb-Douglas type. The economy is characterised by heterogeneous…

Theoretical Economics · Economics 2024-01-17 Subhamon Supantha , Naresh Kumar Sharma

By applying network analysis techniques to large input-output system, we identify key sectors in the local/regional economy. We overcome the limitations of traditional measures of centrality by using random-walk based measures, as an…

General Economics · Economics 2022-09-30 Fernando DePaolis , Phil Murphy , M. Clara DePaolis Kaluza

We consider the problem of impulse response estimation of stable linear single-input single-output systems. It is a well-studied problem where flexible non-parametric models recently offered a leap in performance compared to the classical…

Systems and Control · Computer Science 2018-10-12 Carl Andersson , Niklas Wahlström , Thomas B. Schön

The availability of data on economic uncertainty sparked a lot of interest in models that can timely quantify episodes of international spillovers of uncertainty. This challenging task involves trading off estimation accuracy for more…

General Economics · Economics 2023-02-07 Niels Gillmann , Ostap Okhrin

In complex systems, many different parts interact in non-obvious ways. Traditional research focuses on a few or a single aspect of the problem so as to analyze it with the tools available. To get a better insight of phenomena that emerge…

Multiagent Systems · Computer Science 2015-04-03 Klaus Jaffe

In our research we investigate the output accuracy of discrete event simulation models and agent based simulation models when studying human centric complex systems. In this paper we focus on human reactive behaviour as it is possible in…

Artificial Intelligence · Computer Science 2010-07-05 Mazlina Abdul Majid , Uwe Aickelin , Peer-Olaf Siebers

We explore how dynamic entry deterrence operates through feedback strategies in markets experiencing stochastic demand fluctuations. The incumbent firm, aware of its own cost structure, can deter a potential competitor by strategically…

Theoretical Economics · Economics 2024-10-22 Mustapha Nyenye Issah

Dynamic pricing in high-dimensional markets poses fundamental challenges of scalability, uncertainty, and interpretability. Existing low-rank bandit formulations learn efficiently but rely on latent features that obscure how individual…

Artificial Intelligence · Computer Science 2026-02-03 Srividhya Sethuraman , Chandrashekar Lakshminarayanan

This paper addresses the design of robust dynamic output feedback control for highly uncertain systems in which the unknown disturbance might be excited by the derivative of the control input. This context appears in many industrial…

Systems and Control · Computer Science 2016-10-20 Mazen Alamir , Jean Dobrowolski , Amgad tarek Mohammed

The COVID-19 pandemic has highlighted the importance of supply chains and the role of digital management to react to dynamic changes in the environment. In this work, we focus on developing dynamic inventory ordering policies for a…

Machine Learning · Computer Science 2023-03-23 Julien Siems , Maximilian Schambach , Sebastian Schulze , Johannes S. Otterbach

We study overpricing in a repeated game between two representative agents: a market maker, who controls market liquidity, and a market taker, who chooses trade quantities. Market prices evolve through the endogenous price impact of trades…

Trading and Market Microstructure · Quantitative Finance 2026-05-12 Luigi Foscari , Emanuele Guidotti , Nicolò Cesa-Bianchi , Tatjana Chavdarova , Alfio Ferrara

Adaptive behavior in volatile environments requires agents to switch among value-control regimes across latent contexts, but maintaining separate preferences, policy biases, and action-confidence parameters for every situation is…

Machine Learning · Computer Science 2025-12-16 Jacob Poschl

We develop a theoretical framework that aims to link micro-level option hedging and stock-specific factor exposure with macro-level market turbulence and explain endogenous volatility amplification during gamma-squeeze events. By explicitly…

Trading and Market Microstructure · Quantitative Finance 2025-12-01 Haoying Dai

This paper develops a dynamic factor model that uses euro area (EA) country-specific information on output and inflation to estimate an area-wide measure of the output gap. Our model assumes that output and inflation can be decomposed into…

Econometrics · Economics 2020-01-14 Florian Huber , Michael Pfarrhofer , Philipp Piribauer

Financial markets change their behaviours abruptly. The mean, variance and correlation patterns of stocks can vary dramatically, triggered by fundamental changes in macroeconomic variables, policies or regulations. A trader needs to adapt…

Statistical Finance · Quantitative Finance 2018-12-07 Sonam Srivastava , Ritabratta Bhattacharya

The agent-based model of stock price dynamics on a directed evolving complex network is suggested and studied by direct simulation. The stationary regime is maintained as a result of the balance between the extremal dynamics, adaptivity of…

Physics and Society · Physics 2009-11-13 D. Horvath , Z. Kuscsik

Ground truth labels/outcomes are critical for advancing scientific and engineering applications, e.g., evaluating the treatment effect of an intervention or performance of a predictive model. Since randomly sampling inputs for labeling can…

Machine Learning · Computer Science 2025-02-11 Daksh Mittal , Yuanzhe Ma , Shalmali Joshi , Hongseok Namkoong