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Experimental economics has repeatedly demonstrated that the Nash equilibrium makes inaccurate predictions for a vast set of games. Instead, several alternative theoretical concepts predict behavior that is much more in tune with observed…

General Finance · Quantitative Finance 2015-03-17 Christian Hilbe

There has been substantial recent concern that pricing algorithms might learn to ``collude.'' Supra-competitive prices can emerge as a Nash equilibrium of repeated pricing games, in which sellers play strategies which threaten to punish…

Computer Science and Game Theory · Computer Science 2024-12-17 Eshwar Ram Arunachaleswaran , Natalie Collina , Sampath Kannan , Aaron Roth , Juba Ziani

We study optimal execution in markets with transient price impact in a competitive setting with $N$ traders. Motivated by prior negative results on the existence of pure Nash equilibria, we consider randomized strategies for the traders and…

Trading and Market Microstructure · Quantitative Finance 2026-05-19 Steven Campbell , Marcel Nutz

In socio-technical multi-agent systems, deception exploits privileged information to induce false beliefs in "victims," keeping them oblivious and leading to outcomes detrimental to them or advantageous to the deceiver. We consider…

Systems and Control · Electrical Eng. & Systems 2025-07-08 Michael Tang , Umar Javed , Xudong Chen , Miroslav Krstic , Jorge I. Poveda

We study the plausibility of sub-optimal Nash equilibria of the direct revelation mechanism associated with a strategy-proof social choice function. By using the recently introduced empirical equilibrium analysis (Velez and Brown, 2019,…

Theoretical Economics · Economics 2020-07-08 Rodrigo A. Velez , Alexander L. Brown

The framework of multi-agent learning explores the dynamics of how individual agent strategies evolve in response to the evolving strategies of other agents. Of particular interest is whether or not agent strategies converge to well known…

Computer Science and Game Theory · Computer Science 2023-11-21 Sarah A. Toonsi , Jeff S. Shamma

Game-theoretic approaches and Nash equilibrium have been widely applied across various engineering domains. However, practical challenges such as disturbances, delays, and actuator limitations can hinder the precise execution of Nash…

Computer Science and Game Theory · Computer Science 2026-03-17 Mahdis Rabbani , Navid Mojahed , Shima Nazari

We study one-shot Nash competition between an arbitrary number of identical dealers that compete for the order flow of a client. The client trades either because of proprietary information, exposure to idiosyncratic risk, or a mix of both…

Trading and Market Microstructure · Quantitative Finance 2021-07-27 Martin Herdegen , Johannes Muhle-Karbe , Florian Stebegg

We suggest a novel stochastic-approximation algorithm to compute a symmetric Nash-equilibrium strategy in a general queueing game with a finite action space. The algorithm involves a single simulation of the queueing process with dynamic…

Probability · Mathematics 2023-08-30 Liron Ravner , Ran I. Snitkovsky

Inspired by the recent work by Shapiro et al. [45], we propose a Bayesian distributionally robust Nash equilibrium (BDRNE) model where each player lacks complete information on the true probability distribution of the underlying uncertainty…

Optimization and Control · Mathematics 2025-08-18 Jian Liu , Ziheng Su , Huifu Xu

This paper introduces an equilibrium framework based on sequential sampling in which players face strategic uncertainty over their opponents' behavior and acquire informative signals to resolve it. Sequential sampling equilibrium delivers a…

Theoretical Economics · Economics 2023-11-03 Duarte Gonçalves

The Hotelling-Downs model is a natural and appealing model for understanding strategic positioning by candidates in elections. In this model, voters are distributed on a line, representing their ideological position on an issue. Each…

Computer Science and Game Theory · Computer Science 2024-12-18 Umang Bhaskar , Soumyajit Pyne

We propose a toy model for a stochastic description of the competition between two athletes of unequal strength, whose average strength difference is represented by a parameter $d$. The athletes interact through the choice of their…

Physics and Society · Physics 2019-05-24 Cecile Appert-Rolland , Hendrik-Jan Hilhorst , Amandine Aftalion

Classical results of Decision Theory, and its extension to a multi-agent setting: Game Theory, operate only at the associative level of information; this is, classical decision makers only take into account probabilities of events; we go…

Computer Science and Game Theory · Computer Science 2019-10-16 Mauricio Gonzalez-Soto , Luis E. Sucar , Hugo J. Escalante

We investigate the effects of competition in a problem of resource extraction from a common source with diffusive dynamics. In the symmetric version with identical extraction rates we prove the existence of a Nash equilibrium where the…

Optimization and Control · Mathematics 2021-06-10 Erik Ekström , Kristoffer Lindensjö

Existing settings of decentralized learning either require players to have full information or the system to have certain special structure that may be hard to check and hinder their applicability to practical systems. To overcome this, we…

Systems and Control · Electrical Eng. & Systems 2023-05-17 Yan Jiang , Wenqi Cui , Baosen Zhang , Jorge Cortés

In this paper, we propose a numerical methodology for finding the closed-loop Nash equilibrium of stochastic delay differential games through deep learning. These games are prevalent in finance and economics where multi-agent interaction…

Optimization and Control · Mathematics 2023-07-14 Robert Balkin , Hector D. Ceniceros , Ruimeng Hu

We consider the provision of public goods on networks of strategic agents. We study different effort outcomes of these network games, namely, the Nash equilibria, Pareto efficient effort profiles, and semi-cooperative equilibria (effort…

Computer Science and Game Theory · Computer Science 2016-05-20 Parinaz Naghizadeh , Mingyan Liu

The Nash equilibrium is an important benchmark for behaviour in systems of strategic autonomous agents. Polymatrix games are a succinct and expressive representation of multiplayer games that model pairwise interactions between players. The…

Computer Science and Game Theory · Computer Science 2016-03-17 Argyrios Deligkas , John Fearnley , Tobenna Peter Igwe , Rahul Savani

We introduce a strategic behavior in reinsurance bilateral transactions, where agents choose the risk preferences they will appear to have in the transaction. Within a wide class of risk measures, we identify agents' strategic choices to a…

Risk Management · Quantitative Finance 2020-03-19 Michail Anthropelos , Tim J. Boonen