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Autonomous and learning agents increasingly participate in markets - setting prices, placing bids, ordering inventory. Such agents are not just aiming to optimize in an uncertain environment; they are making decisions in a game-theoretical…

Computer Science and Game Theory · Computer Science 2025-06-24 Martin Bichler , Julius Durmann , Matthias Oberlechner

Submodular functions have been a powerful mathematical model for a wide range of real-world applications. Recently, submodular functions are becoming increasingly important in machine learning (ML) for modelling notions such as information…

Machine Learning · Computer Science 2022-11-17 Dongge Han , Michael Wooldridge , Alex Rogers , Olga Ohrimenko , Sebastian Tschiatschek

Despite recent advancements in machine learning, in practice, relevant datasets are often distributed among market competitors who are reluctant to share. To incentivize data sharing, recent works propose analytics markets, where multiple…

General Economics · Economics 2025-08-05 Thomas Falconer , Jalal Kazempour , Pierre Pinson

Algorithmic trading in modern financial markets is widely acknowledged to exhibit strategic, game-theoretic behaviors whose complexity can be difficult to model. A recent series of papers (Chriss, 2024b,c,a, 2025) has made progress in the…

Computer Science and Game Theory · Computer Science 2025-06-10 Michael Kearns , Mirah Shi

We study incentive design when multiple principals simultaneously design mechanisms for their respective teams in environments with strategic spillovers. In this environment, each principal's set of incentive-compatible mechanisms--those…

Theoretical Economics · Economics 2026-05-11 Brian Roberson

Pricing algorithms have demonstrated the capability to learn tacit collusion that is largely unaddressed by current regulations. Their increasing use in markets, including oligopolistic industries with a history of collusion, calls for…

Computer Science and Game Theory · Computer Science 2025-02-26 Paul Friedrich , Barna Pásztor , Giorgia Ramponi

This paper examines whether widely used online learning algorithms in pricing can independently reach competitive outcomes or instead foster tacit collusion. This issue has drawn considerable attention from competition regulators as…

Computer Science and Game Theory · Computer Science 2025-11-25 Martin Bichler , Julius Durmann , Matthias Oberlechner

Game theory provides a quantitative framework for analyzing the behavior of rational agents. The Iterated Prisoner's Dilemma in particular has become a standard model for studying cooperation and cheating, with cooperation often emerging as…

Populations and Evolution · Quantitative Biology 2015-06-18 Alexander J. Stewart , Joshua B. Plotkin

The following notes contain a computer simulation concerning effective competition in an evolutionary environment. The scope is to underline the existence of a side effect pertaining to the competitive processes: the tendency toward an…

Computers and Society · Computer Science 2007-05-23 Michele Tucci

Dynamic pricing of goods in a competitive environment to maximize revenue is a natural objective and has been a subject of research over the years. In this paper, we focus on a class of markets exhibiting the substitutes property with…

Machine Learning · Computer Science 2017-09-18 Paresh Nakhe

The threat of algorithmic collusion, and whether it merits regulatory intervention, remains debated, as existing evaluations of its emergence often rely on long learning horizons, assumptions about counterparty rationality in adopting…

Multiagent Systems · Computer Science 2026-03-11 Yuhong Luo , Daniel Schoepflin , Xintong Wang

When sales of a product are affected by randomness in demand, retailers can use dynamic pricing strategies to maximise their profits. In this article the pricing problem is formulated as a stochastic optimal control problem, where the…

Optimization and Control · Mathematics 2017-10-17 Asbjørn N. Riseth , Jeff N. Dewynne , Chris L. Farmer

Price discrimination, which refers to the strategy of setting different prices for different customer groups, has been widely used in online retailing. Although it helps boost the collected revenue for online retailers, it might create…

Machine Learning · Computer Science 2023-07-31 Xi Chen , Jiameng Lyu , Xuan Zhang , Yuan Zhou

Imitation is widely observed in populations of decision-making agents. Using our recent convergence results for asynchronous imitation dynamics on networks, we consider how such networks can be efficiently driven to a desired equilibrium…

Computer Science and Game Theory · Computer Science 2017-04-17 James Riehl , Pouria Ramazi , Ming Cao

Mechanism design is a well-established game-theoretic paradigm for designing games to achieve desired outcomes. This paper addresses a closely related but distinct concept, equilibrium design. Unlike mechanism design, the designer's…

Computer Science and Game Theory · Computer Science 2024-08-20 Muhammad Najib , Giuseppe Perelli

Autonomous pricing algorithms are increasingly influencing competition in digital markets; however, their behavior under realistic demand conditions remains largely unexamined. This paper offers a thorough analysis of four pricing…

Machine Learning · Computer Science 2025-12-03 Aheer Sravon , Md. Ibrahim , Devdyuti Mazumder , Ridwan Al Aziz

This tutorial article puts forth a framework to analyze the noncooperative strategic interactions among the members of a large population of bounded rationality agents. Our approach hinges on, unifies and generalizes existing methods and…

Optimization and Control · Mathematics 2020-07-15 Shinkyu Park , Nuno C. Martins , Jeff S. Shamma

We study the problem of online dynamic pricing with two types of fairness constraints: a "procedural fairness" which requires the proposed prices to be equal in expectation among different groups, and a "substantive fairness" which requires…

Machine Learning · Computer Science 2022-09-27 Jianyu Xu , Dan Qiao , Yu-Xiang Wang

Fairness is an important consideration for dynamic resource allocation in multi-agent systems. Many existing methods treat fairness as a one-shot problem without considering temporal dynamics, which misses the nuances of accumulating…

Artificial Intelligence · Computer Science 2026-02-03 Ashwin Kumar , William Yeoh

We study a finite-horizon dynamic wholesale-price contract between a manufacturer and a retailer, both of whom observe only sales, rather than the true demand. When the retailer stocks out, unmet demand is unobserved, so both parties update…

Computer Science and Game Theory · Computer Science 2026-03-17 Michalis Deligiannis , Marco Scarsini , Xavier Venel