Related papers: Markets are competitive if and only if P != NP
We model a competitive market where AI agents buy answers from upstream generative models and resell them to users who differ in how much they value accuracy and in how much they fear hallucinations. Agents can privately exert effort for…
Technological advancement has lead to an increase in number and type of trading venues and diversification of goods traded. These changes have re-emphasized the importance of understanding the effects of market competition: does…
This work studies equilibrium problems under uncertainty where firms maximize their profits in a robust way when selling their output. Robust optimization plays an increasingly important role when best guaranteed objective values are to be…
Competition is one of the most fundamental phenomena in physics, biology and economics. Recent studies of the competition between innovations have highlighted the influence of switching costs and interaction networks, but the problem is…
Coalitional control is concerned with the management of multi-agent systems where cooperation cannot be taken for granted (due to, e.g., market competition, logistics). This paper proposes a model predictive control (MPC) framework aimed at…
We analyze the structure of the market for foundation models, i.e., large AI models such as those that power ChatGPT and that are adaptable to downstream uses, and we examine the implications for competition policy and regulation. We…
We study the computational complexity of "public goods games on networks". In this model, each vertex in a graph is an agent that needs to take a binary decision of whether to "produce a good" or not. Each agent's utility depends on the…
We study the regulation of algorithmic (non-)collusion amongst sellers in dynamic imperfect price competition by auditing their data as introduced by Hartline et al. [2024]. We develop an auditing method that tests whether a seller's…
This paper develops a recent line of economic theory seeking to understand public goods economies using methods of topological analysis. Our first main result is a very clean characterization of the economy's core (the standard solution…
We contrast Arbitrage Pricing Theory (APT), the theoretical basis for the development of financial instruments, with a dynamical picture of an interacting market, in a simple setting. The proliferation of financial instruments apparently…
Motivated by applications such as voluntary carbon markets and educational testing, we consider a market for goods with varying but hidden levels of quality in the presence of a third-party certifier. The certifier can provide informative…
Current techniques in machine learning are so far are unable to learn classifiers that are robust to adversarial perturbations. However, they are able to learn non-robust classifiers with very high accuracy, even in the presence of random…
While evolutionary computation is well suited for automatic discovery in engineering, it can also be used to gain insight into how humans and organizations could perform more effectively. Using a real-world problem of innovation search in…
I characterize the consumer-optimal market segmentation in competitive markets where multiple firms selling differentiated products to consumers with unit demand. This segmentation is public---in that each firm observes the same market…
There is growing experimental evidence that $Q$-learning agents may learn to charge supracompetitive prices. We provide the first theoretical explanation for this behavior in infinite repeated games. Firms update their pricing policies…
Finding, counting, or determining the existence of Nash equilibria, where players must play optimally given each others' actions, are known to be computational intractable problems. We ask whether weakening optimality to the requirement…
Collusion among autonomous agents poses a critical security threat in embodied multi-agent systems (MAS), where coordinated behaviors can deviate from global objectives and lead to real-world consequences. Existing defenses, primarily based…
The possibility of statistical evaluation of the market completeness and incompleteness is investigated for continuous time diffusion stock market models. It is known that the market completeness is not a robust property: small random…
When agents are acting together, they may need a simple mechanism to decide on joint actions. One possibility is to have the agents express their preferences in the form of a ballot and use a voting rule to decide the winning action(s).…
We consider a periodical equilibrium pricing problem for multiple firms over a planning horizon of T periods. At each period, firms set their selling prices and receive stochastic demand from consumers. Firms do not know their underlying…