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We study liquidity provision in the presence of exogenous competition. We consider a `reference market maker' who monitors her inventory and the aggregated inventory of the competing market makers. We assume that the competing market makers…

Mathematical Finance · Quantitative Finance 2024-07-25 Robert Boyce , Martin Herdegen , Leandro Sánchez-Betancourt

How should an agent (the sender) observing multi-dimensional data (the state vector) persuade another agent to take the desired action? We show that it is always optimal for the sender to perform a (non-linear) dimension reduction by…

Machine Learning · Statistics 2022-10-05 Semyon Malamud , Andreas Schrimpf

We study market interactions in which buyers are allowed to credibly reveal partial information about their types to the seller. Previous recent work has studied the special case of one buyer and one good, showing that such communication…

Computer Science and Game Theory · Computer Science 2022-05-05 Daniel Halpern , Gregory Kehne , Jamie Tucker-Foltz

We study price-discrimination games between buyers and a seller where privacy arises endogenously--that is, utility maximization yields equilibrium strategies where privacy occurs naturally. In this game, buyers with a high valuation for a…

Computer Science and Game Theory · Computer Science 2024-04-17 Nivasini Ananthakrishnan , Tiffany Ding , Mariel Werner , Sai Praneeth Karimireddy , Michael I. Jordan

This paper investigates third-degree price discrimination under endogenous market segmentation. Segmenting a market requires access to information about consumers, and this information comes with a cost. I explore the trade-offs between the…

Theoretical Economics · Economics 2024-06-11 Irfan Tekdir

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

We study the problem of designing revenue-maximizing mechanisms for a selfish mediator who facilitates trade between a buyer and a seller. We consider a setting where the mediator does not have information advantage and the buyer's…

Computer Science and Game Theory · Computer Science 2026-03-10 Zhikang Fan , Weiran Shen , Shaojie Tang , Yao Wang

An information broker incentivizes consumers to share their information, while designing an information structure to shape the market segmentation. The information broker is a metaphor for an Internet platform that matches consumers with…

Theoretical Economics · Economics 2025-03-26 Junjie Chen , Takuro Yamashita

When introducing a novel product, a seller sets a price and decides how much information to provide to a buyer, who may incur a search cost to discover an outside option. The buyer knows the outside option distribution; the seller knows…

Theoretical Economics · Economics 2025-08-07 Kun Zhang

I study a model of information acquisition and transmission in which the sender's ability to misreport her findings is limited. The sender learns covertly, so a key observation is that in equilibrium she must be deterred from undetectably…

Theoretical Economics · Economics 2025-10-28 Matteo Escudé

A seller sells an object over time but is uncertain how the buyer learns their willingness-to-pay. We consider informational robustness under \textit{limited commitment}, where the seller offers a price \textit{each period} to maximize…

Theoretical Economics · Economics 2025-09-10 Zihao Li , Jonathan Libgober , Xiaosheng Mu

The design of data markets has gained importance as firms increasingly use machine learning models fueled by externally acquired training data. A key consideration is the externalities firms face when data, though inherently freely…

Computer Science and Game Theory · Computer Science 2024-10-22 Anish Agarwal , Munther Dahleh , Thibaut Horel , Maryann Rui

We develop a multi-period Kyle-type model that incorporates both mandatory disclosure of informed trades and imperfect competition among market makers. We prove the existence and uniqueness of a linear equilibrium and show that the…

Trading and Market Microstructure · Quantitative Finance 2026-04-14 Seongjin Kim , Jin Hyuk Choi

We investigate a seller's revenue-maximizing mechanism in a setting where a desirable good is sold together with an undesirable bad (e.g., advertisements) that generates third-party revenue. The buyer's private information is…

Theoretical Economics · Economics 2026-02-02 Kolagani Paramahamsa

Most methods for publishing data with privacy guarantees introduce randomness into datasets which reduces the utility of the published data. In this paper, we study the privacy-utility tradeoff by taking maximal leakage as the privacy…

Information Theory · Computer Science 2021-05-04 Sara Saeidian , Giulia Cervia , Tobias J. Oechtering , Mikael Skoglund

We study scenarios where multiple sellers of a homogeneous good compete on prices, where each seller can only sell to some subset of the buyers. Crucially, sellers cannot price-discriminate between buyers. We model the structure of the…

Computer Science and Game Theory · Computer Science 2013-11-12 Moshe Babaioff , Brendan Lucier , Noam Nisan

We introduce an interactive market setup with sequential auctions where agents receive variegated signals with a known deadline. The effects of differential information and mutual learning on the allocation of overall profit \& loss (P\&L)…

Mathematical Finance · Quantitative Finance 2016-10-14 N. Serhan Aydin

Information is replicable in that it can be simultaneously consumed and sold to others. We study how resale affects a decentralized market for information. We show that even if the initial seller is an informational monopolist, she captures…

Computer Science and Game Theory · Computer Science 2022-12-06 S. Nageeb Ali , Ayal Chen-Zion , Erik Lillethun

Machine learning (ML) model trading, known for its role in protecting data privacy, faces a major challenge: information asymmetry. This issue can lead to model deception, a problem that current literature has not fully solved, where the…

Computer Science and Game Theory · Computer Science 2026-01-13 Xiang Li , Jianwei Huang , Kai Yang , Chenyou Fan

We study a seller who sells a single good to multiple bidders with uncertainty over the joint distribution of bidders' valuations, as well as bidders' higher-order beliefs about their opponents. The seller only knows the (possibly…

Theoretical Economics · Economics 2022-02-16 Ethan Che
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