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Throttling is a popular method of budget management for online ad auctions in which the platform modulates the participation probability of an advertiser in order to smoothly spend her budget across many auctions. In this work, we…
Algorithmic price collusion facilitated by artificial intelligence (AI) algorithms raises significant concerns. We examine how AI agents using Q-learning engage in tacit collusion in two-sided markets. Our experiments reveal that AI-driven…
We investigate optimal social welfare allocations of $m$ items to $n$ agents with binary additive or submodular valuations. For binary additive valuations, we prove that the set of optimal allocations coincides with the set of so-called…
Online bipartite matching (OBM) is a fundamental model underpinning many important applications, including search engine advertisement, website banner and pop-up ads, and ride-hailing. We study the i.i.d. OBM problem, where one side of the…
Small operators who take part in secondary wireless spectrum markets typically have strict budget limits. In this paper, we study the bidding problem of a budget constrained operator in repeated secondary spectrum auctions. In existing…
Bielecki and Rutkowski (2014) introduced and studied a generic nonlinear market model, which includes several risky assets, multiple funding accounts and margin accounts. In this paper, we examine the pricing and hedging of contract both…
This paper considers options pricing when the assumption of normality is replaced with that of the symmetry of the underlying distribution. Such a market affords many equivalent martingale measures (EMM). However we argue (as in the…
Will people eventually learn the value of an asset through observable information? This paper studies observational learning in a market with competitive prices. Comparing a market with public signals and a market with private signals in a…
As algorithms increasingly mediate competitive decision-making, their influence extends beyond individual outcomes to shaping strategic market dynamics. In two preregistered experiments, we examined how algorithmic advice affects human…
We consider the classical linear assignment problem, and we introduce new auction algorithms for its optimal and suboptimal solution. The algorithms are founded on duality theory, and are related to ideas of competitive bidding by persons…
We investigate pricing-hedging duality for American options in discrete time financial models where some assets are traded dynamically and others, e.g. a family of European options, only statically. In the first part of the paper we…
A dynamic model of the product lifecycle of (nearly) homogeneous durables in polypoly markets is established. It describes the concurrent evolution of the unit sales and price of durable goods. The theory is based on the idea that the sales…
Mobile traffic explosion causes spectrum shortage and polarization of data usage among users, which will eventually decrease user welfare in mobile communication services. Governments around the world are planning to make more spectrum…
We investigate a spectrum oligopoly market where primaries lease their channels to secondaries in lieu of financial remuneration. Transmission quality of a channel evolves randomly. Each primary has to select the price it would quote…
We study a coevolutionary public goods game on a dynamic hypergraph, where an individual's payoff directly determines the number of hyperedges it can join. In the proposed mechanism, nodes adjust their participation according to the group…
The emergence of price comparison websites (PCWs) has presented insurers with unique challenges in formulating effective pricing strategies. Operating on PCWs requires insurers to strike a delicate balance between competitive premiums and…
The growing demand for data and AI-generated digital goods, such as personalized written content and artwork, necessitates effective pricing and feedback mechanisms that account for uncertain utility and costly production. Motivated by…
We develop a game-theoretic framework for the study of competition between firms who have budgets to "seed" the initial adoption of their products by consumers located in a social network. The payoffs to the firms are the eventual number of…
We consider a discrete-time nonatomic routing game with variable demand and uncertain costs. Given a routing network with single origin and destination, the cost function of each edge depends on some uncertain persistent state parameter. At…
Contemporary digital capitalism relies on the large-scale extraction and commodification of personal data. Far from revealing isolated attributes, such data increasingly exposes intersectional social identities formed by combinations of…