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In this dissertation two simple models of stock exchange are developed and simulated numerically. The first is characterized by centralized trading with a market maker. Unfortunately, this model is unable to generate realistic market…

Statistical Mechanics · Physics 2008-12-02 Hendrik J. Blok

We study the role of contextual information in the online learning problem of brokerage between traders. In this sequential problem, at each time step, two traders arrive with secret valuations about an asset they wish to trade. The learner…

Computational Finance · Quantitative Finance 2026-02-20 François Bachoc , Tommaso Cesari , Roberto Colomboni

We propose a simple market model where agents trade different types of products with each other by using money, relying only on local information. Value fluctuations of single products, combined with the condition of maximum profit in…

Condensed Matter · Physics 2015-06-24 Raul Donangelo , Alex Hansen , Kim Sneppen , Sergio R. Souza

This paper presents a model of capital accumulation for a large number of heterogenous producer-consumers in an exchange space in which interactions depend on agents' positions. Each agent is described by his production, consumption, stock…

General Finance · Quantitative Finance 2019-09-26 Pierre Gosselin , Aïleen Lotz , Marc Wambst

We study the set of possible joint posterior belief distributions of a group of agents who share a common prior regarding a binary state, and who observe some information structure. For two agents we introduce a quantitative version of…

Theoretical Economics · Economics 2020-12-24 Itai Arieli , Yakov Babichenko , Fedor Sandomirskiy , Omer Tamuz

We study a data marketplace where a broker intermediates between buyers, who seek to estimate the mean \(\mu\) of an unknown normal distribution \(\Ncal(\mu, \sigma^2)\), and contributors, who can collect data from this distribution at a…

Computer Science and Game Theory · Computer Science 2026-04-03 Keran Chen , Alex Clinton , Kirthevasan Kandasamy

In two-sided matching markets, the agents are partitioned into two sets. Each agent wishes to be matched to an agent in the other set and has a strict preference over these potential matches. A matching is stable if there are no blocking…

Computer Science and Game Theory · Computer Science 2013-02-26 Georgios Askalidis , Nicole Immorlica , Emmanouil Pountourakis

We model an informed agent with information about the future value of an asset trying to maximize profits when subjected to a transaction cost as well as a market maker tasked with setting fair transaction prices. In a single auction model,…

Trading and Market Microstructure · Quantitative Finance 2020-07-29 Weston Barger , Ryan Donnelly

A simple trading model based on pair pattern strategy space with holding periods is proposed. Power-law behaviors are observed for the return variance $\sigma^2$, the price impact $H$ and the predictability $K$ for both models with linear…

Portfolio Management · Quantitative Finance 2009-11-13 F. Ren , Y. -C. Zhang

We mathematically analyze a simple market model where trading at each point in time involves only two agents with the sum of their money being conserved and with neither parties resulting with negative money after the interaction process.…

Statistical Mechanics · Physics 2016-08-31 Arnab Das , Sudhakar Yarlagadda

We study the problem of contextual online bilateral trade. At each round, the learner faces a seller-buyer pair and must propose a trade price without observing their private valuations for the item being sold. The goal of the learner is to…

Computer Science and Game Theory · Computer Science 2026-02-16 Emanuele Coccia , Martino Bernasconi , Andrea Celli

We present a simple model of a non-equilibrium self-organizing market where asset prices are partially driven by investment decisions of a bounded-rational agent. The agent acts in a stochastic market environment driven by various exogenous…

Computational Finance · Quantitative Finance 2018-05-18 Igor Halperin , Ilya Feldshteyn

Selling a single item to $n$ self-interested buyers is a fundamental problem in economics, where the two objectives typically considered are welfare maximization and revenue maximization. Since the optimal mechanisms are often impractical…

Computer Science and Game Theory · Computer Science 2024-11-06 Billy Jin , Thomas Kesselheim , Will Ma , Sahil Singla

We study a dynamic market setting where an intermediary interacts with an unknown large sequence of agents that can be either sellers or buyers: their identities, as well as the sequence length $n$, are decided in an adversarial, online…

Computer Science and Game Theory · Computer Science 2017-03-29 Yiannis Giannakopoulos , Elias Koutsoupias , Philip Lazos

The author seeks to develop a model to alter the bid-offer spread, currently quoted by market makers, that varies with the market and trading conditions. The dynamic nature of financial markets and trading, as with the rest of social…

Economics · Quantitative Finance 2016-02-03 Ravi Kashyap

We consider a monopolist seller with $n$ heterogeneous items, facing a single buyer. The buyer has a value for each item drawn independently according to (non-identical) distributions, and her value for a set of items is additive. The…

Computer Science and Game Theory · Computer Science 2020-08-03 Moshe Babaioff , Nicole Immorlica , Brendan Lucier , S. Matthew Weinberg

We construct an empirically founded model of a repo trade intermediated by two broker-dealers and prove multiple equilibrium and the existence of equilibrium at the joint profit maximizing volume of trade. We then present a smart contract…

Theoretical Economics · Economics 2026-04-21 Daniel Aronoff , Robert M. Townsend

We introduce a new framework to model interactions among agents which seek to trade to minimize their risk with respect to some future outcome. We quantify this risk using the concept of risk measures from finance, and introduce a class of…

Computer Science and Game Theory · Computer Science 2014-10-13 Rafael M. Frongillo , Mark D. Reid

We consider a conditional factor model for a multivariate portfolio of United States equities in the context of analysing a statistical arbitrage trading strategy. A state space framework underlies the factor model whereby asset returns are…

Statistical Finance · Quantitative Finance 2023-09-06 Trent Spears , Stefan Zohren , Stephen Roberts

Learning high-dimensional distributions is a significant challenge in machine learning and statistics. Classical research has mostly concentrated on asymptotic analysis of such data under suitable assumptions. While existing works…

Machine Learning · Computer Science 2024-11-19 Sutanu Gayen , Sanket Kale , Sayantan Sen