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We consider a pair of traders in a market where the information available to the second trader is a strict subset of the information available to the first trader. The traders make prices based on the information available concerning a…

Mathematical Finance · Quantitative Finance 2024-01-24 George Bouzianis , Lane P. Hughston , Leandro Sánchez-Betancourt

Social and real-world considerations such as robustness, fairness, social welfare and multi-agent tradeoffs have given rise to multi-distribution learning paradigms, such as collaborative learning, group distributionally robust…

Machine Learning · Computer Science 2024-04-04 Nika Haghtalab , Michael I. Jordan , Eric Zhao

We present a simple dynamical model for describing trading interactions between agents in a social network by considering only two dynamical variables, namely money and goods or services, that are assumed conserved over the whole time span…

Physics and Society · Physics 2017-02-01 Rafael A. Barrio , Tzipe Govezensky , Élfego Ruiz-Gutiérrez , Kimmo K. Kaski

We design novel mechanisms for welfare-maximization in two-sided markets. That is, there are buyers willing to purchase items and sellers holding items initially, both acting rationally and strategically in order to maximize utility. Our…

Computer Science and Game Theory · Computer Science 2021-06-01 Alexander Braun , Thomas Kesselheim

We model the trading activity between a broker and her clients (informed and uninformed traders) as an infinite-horizon stochastic control problem. We derive the broker's optimal dealing strategy in closed form and use this to introduce an…

Trading and Market Microstructure · Quantitative Finance 2025-03-25 Álvaro Cartea , Leandro Sánchez-Betancourt

We consider a setting where an auctioneer sells a single item to $n$ potential agents with {\em interdependent values}. That is, each agent has her own private signal, and the valuation of each agent is a known function of all $n$ private…

Computer Science and Game Theory · Computer Science 2018-06-12 Alon Eden , Michal Feldman , Amos Fiat , Kira Goldner

We characterise the set of dominant strategy incentive compatible (DSIC), strongly budget balanced (SBB), and ex-post individually rational (IR) mechanisms for the multi-unit bilateral trade setting. In such a setting there is a single…

Computer Science and Game Theory · Computer Science 2018-11-14 Matthias Gerstgrasser , Paul W. Goldberg , Bart de Keijzer , Philip Lazos , Alexander Skopalik

A protocol for distributed estimation of discrete distributions is proposed. Each agent begins with a single sample from the distribution, and the goal is to learn the empirical distribution of the samples. The protocol is based on a simple…

Optimization and Control · Mathematics 2014-06-06 Anand D. Sarwate , Tara Javidi

Using techniques from information geometry, we construct a semi-Hamiltonian system modelling trader beliefs in a binary asset market and study the impact of inequality or asymmetry in beliefs, information, and power on price dynamics. We…

Physics and Society · Physics 2025-10-08 Henry Waldhausen , Christopher Griffin

We consider a general small-scale market for agent-to-agent resource sharing, in which each agent could either be a server (seller) or a client (buyer) in each time period. In every time period, a server has a certain amount of resources…

Computer Science and Game Theory · Computer Science 2018-01-01 Bainan Xia , Srinivas Shakkottai , Vijay Subramanian

We study data exchange among strategic agents without monetary transfers, motivated by domains such as research consortia and healthcare collaborations where payments are infeasible or restricted. The central challenge is to reap the…

Computer Science and Game Theory · Computer Science 2026-02-13 Rashida Hakim , Christos Papadimitriou , Mihalis Yannakakis

Algorithmic trading relies on machine learning models to make trading decisions. Despite strong in-sample performance, these models often degrade when confronted with evolving real-world market regimes, which can shift dramatically due to…

Machine Learning · Computer Science 2026-01-27 Haochong Xia , Simin Li , Ruixiao Xu , Zhixia Zhang , Hongxiang Wang , Zhiqian Liu , Teng Yao Long , Molei Qin , Chuqiao Zong , Bo An

A prototype model of stock market is introduced and studied numerically. In this self-organized system, we consider only the interaction among traders without external influences. Agents trade according to their own strategy, to accumulate…

Statistical Mechanics · Physics 2009-10-30 G. Caldarelli , M. Marsili , Y. -C. Zhang

Simple agent based exchange models are a commonplace in the study of wealth distribution in an artificial economy. Generally, in a system that is composed of many agents characterized by their wealth and risk-aversion factor, two agents are…

Statistical Mechanics · Physics 2020-06-24 Ben-Hur Francisco Cardoso , Sebastián Gonçalves , José Roberto Iglesias

We introduce a simple benchmark model of dynamic matching in networked markets, where agents arrive and depart stochastically and the network of acceptable transactions among agents forms a random graph. We analyze our model from three…

Computer Science and Game Theory · Computer Science 2014-02-18 Mohammad Akbarpour , Shengwu Li , Shayan Oveis Gharan

We consider the learning dynamics of a single reinforcement learning optimal execution trading agent when it interacts with an event driven agent-based financial market model. Trading takes place asynchronously through a matching engine in…

Trading and Market Microstructure · Quantitative Finance 2023-11-23 Matthew Dicks , Andrew Paskaramoorthy , Tim Gebbie

I consider an environment in which a decision maker faces uncertainty and privately holds information in the form of a signal about the true state of the world. The decision maker purchases additional information from a data broker before…

Theoretical Economics · Economics 2026-03-02 Arlindo Skënderaj

We study sequential multi-issue trading between two greedily rational agents who exchange resources from a finite set of categories. Each agent's utility depends on its allocation, but the offering agent does not know the responding agent's…

Multiagent Systems · Computer Science 2026-05-15 Surya Murthy , Mustafa O. Karabag , Ufuk Topcu

We consider the impact of fairness requirements on the social efficiency of truthful mechanisms for trade, focusing on Bayesian bilateral-trade settings. Unlike the full information case in which all gains-from-trade can be realized and…

Computer Science and Game Theory · Computer Science 2025-02-27 Moshe Babaioff , Yiding Feng , Noam Manaker Morag

This study strengthens the foundations of multi-venue market modeling by attempting an independent replication of Wah and Wellman's 2016 model of latency arbitrage in a fragmented market. We find that faithful replication is hindered by…

Trading and Market Microstructure · Quantitative Finance 2026-04-23 Ethan Ratliff-Crain , Colin M. Van Oort , Matthew T. K. Koehler , Brian F. Tivnan