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In this research, we have empirically investigated the key drivers affecting liquidity in equity markets. We illustrated how theoretical models, such as Kyle's model, of agents' interplay in the financial markets, are aligned with the…

Computational Finance · Quantitative Finance 2020-04-28 Anastasia Bugaenko

Abstract In this work, we build two environments, namely the modified QLBS and RLOP models, from a mathematics perspective which enables RL methods in option pricing through replicating by portfolio. We implement the environment…

Pricing of Securities · Quantitative Finance 2022-05-12 Ziheng Chen

A natural optimization model that formulates many online resource allocation and revenue management problems is the online linear program (LP) in which the constraint matrix is revealed column by column along with the corresponding…

Data Structures and Algorithms · Computer Science 2014-04-10 Shipra Agrawal , Zizhuo Wang , Yinyu Ye

This paper is concerned with the determination of pricing strategies for a firm that in each period of a finite horizon receives replenishment quantities of a single product which it sells in two markets, e.g., a long-distance market and an…

Optimization and Control · Mathematics 2015-09-25 Wen , Chen , Adam Fleischhacker , Michael N. Katehakis

Cooperation and competition are fundamental forces shaping both natural and human systems, yet their interplay remains poorly understood. The Prisoner's Dilemma Game (PDG) has long served as a foundational framework in Game Theory for…

Physics and Society · Physics 2025-08-01 Alfonso de Miguel-Arribas , Chengbin Sun , Carlos Gracia-Lázaro , Yamir Moreno

We introduce a new Self-Organized Criticality (SOC) model for simulating price evolution in an artificial financial market, based on a multilayer network of traders. The model also implements, in a quite realistic way with respect to…

Trading and Market Microstructure · Quantitative Finance 2016-06-30 Alessio Emanuele Biondo , Alessandro Pluchino , Andrea Rapisarda

We analyze digital markets where a monopolist platform uses data to match multiproduct sellers with heterogeneous consumers who can purchase both on and off the platform. The platform sells targeted ads to sellers that recommend their…

Theoretical Economics · Economics 2023-04-18 Dirk Bergemann , Alessandro Bonatti

Learning effective pricing strategies is crucial in digital marketplaces, especially when buyers' valuations are unknown and must be inferred through interaction. We study the online contextual pricing problem, where a seller observes a…

Computer Science and Game Theory · Computer Science 2026-02-18 Joon Suk Huh , Kirthevasan Kandasamy

This paper explores the integration of strategic optimization methods in search advertising, focusing on ad ranking and bidding mechanisms within E-commerce platforms. By employing a combination of reinforcement learning and evolutionary…

Machine Learning · Computer Science 2024-05-30 Chang Zhou , Yang Zhao , Jin Cao , Yi Shen , Xiaoling Cui , Chiyu Cheng

We investigate online pricing in two-sided markets where a platform repeatedly posts prices based on binary accept/reject feedback to maximize gains-from-trade (GFT) or profit. We characterize the regret achievable across three mechanism…

Computer Science and Game Theory · Computer Science 2026-02-13 Yiding Feng , Mengfan Ma , Bo Peng , Zongqi Wan

This paper explores the application of a reinforcement learning (RL) framework using the Q-Learning algorithm to enhance dynamic pricing strategies in the retail sector. Unlike traditional pricing methods, which often rely on static demand…

Machine Learning · Computer Science 2024-11-28 Mohit Apte , Ketan Kale , Pranav Datar , Pratiksha Deshmukh

In this paper we apply active learning algorithms for dynamic pricing in a prominent e-commerce website. Dynamic pricing involves changing the price of items on a regular basis, and uses the feedback from the pricing decisions to update…

Machine Learning · Statistics 2018-02-12 Ravi Ganti , Matyas Sustik , Quoc Tran , Brian Seaman

We consider repeated multi-unit auctions with uniform pricing, which are widely used in practice for allocating goods such as carbon licenses. In each round, $K$ identical units of a good are sold to a group of buyers that have valuations…

Computer Science and Game Theory · Computer Science 2024-01-17 Simina Brânzei , Mahsa Derakhshan , Negin Golrezaei , Yanjun Han

The use of reinforcement learning algorithms in financial trading is becoming increasingly prevalent. However, the autonomous nature of these algorithms can lead to unexpected outcomes that deviate from traditional game-theoretical…

Trading and Market Microstructure · Quantitative Finance 2026-02-16 Fabrizio Lillo , Andrea Macrì

Dynamic hedging is a financial strategy that consists in periodically transacting one or multiple financial assets to offset the risk associated with a correlated liability. Deep Reinforcement Learning (DRL) algorithms have been used to…

Computational Finance · Quantitative Finance 2025-04-18 Andrei Neagu , Frédéric Godin , Leila Kosseim

In this paper, we investigate whether deep reinforcement-learning agents interacting in a shared optimal-execution environment can sustain supra-competitive outcomes, in the sense of achieving lower implementation shortfalls than the…

Computational Finance · Quantitative Finance 2026-05-22 Christos Spyridon Koulouris , Carlo Campajola

We study a sequential price competition among $N$ sellers, each influenced by the pricing decisions of their rivals. Specifically, the demand function for each seller $i$ follows the single index model $\lambda_i(\mathbf p) = \mu_i(\langle…

Computer Science and Game Theory · Computer Science 2026-05-08 Daniele Bracale , Moulinath Banerjee , Cong Shi , Yuekai Sun

Ridesharing markets are complex: drivers are strategic, rider demand and driver availability are stochastic, and complex city-scale phenomena like weather induce large scale correlation across space and time. At the same time, past work has…

Optimization and Control · Mathematics 2022-05-20 J. Massey Cashore , Peter I. Frazier , Eva Tardos

The performance of many large-scale and data-intensive distributed systems critically depends on the capacity of the interconnecting network. This paper is motivated by the vision of self-adjusting infrastructures whose resources can be…

Data Structures and Algorithms · Computer Science 2023-04-21 Harald Räcke , Stefan Schmid , Ruslan Zabrodin

Real-time AI services increasingly operate across the device-edge-cloud continuum, where autonomous AI agents generate latency-sensitive workloads, orchestrate multi-stage processing pipelines, and compete for shared resources under policy…

Artificial Intelligence · Computer Science 2026-03-09 Lauri Lovén , Alaa Saleh , Reza Farahani , Ilir Murturi , Miguel Bordallo López , Praveen Kumar Donta , Schahram Dustdar