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Related papers: Competition between DEXs through Dynamic Fees

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Many economic transactions, including those of online markets, have a time lag between the start and end times of transactions. Customers need to wait for completion of their transaction (order fulfillment) and hence are also interested in…

Optimization and Control · Mathematics 2018-10-19 Manu K. Gupta , N. Hemachandra

We consider two competing platforms operating in a two-sided market and offering identical services to their customers at potentially different prices. The objective of each platform is to maximize its throughput or revenue by suitably…

Optimization and Control · Mathematics 2020-02-03 Mansi Sood , Ankur A. Kulkarni , Sharayu Moharir

Having fixed capacities, homogeneous products and price sensitive customer purchase decision are primary distinguishing characteristics of numerous revenue management systems. Even with two or three rivals, competition is still highly…

Theoretical Economics · Economics 2022-08-08 Niloofar Fadavi

Decentralized exchanges using automated market makers create arbitrage opportunities with centralized exchanges, where gas fees and transaction ordering are critical. Existing models largely overlook competition among arbitrageurs, despite…

Mathematical Finance · Quantitative Finance 2026-02-27 Xue Dong He , Chen Yang , Yutian Zhou

We construct Nash equilibria in feedback form for a class of two-person stochastic games of singular control with absorption, arising from a stylized model for corporate finance. More precisely, the paper focusses on a strategic dynamic…

Optimization and Control · Mathematics 2025-07-04 Tiziano De Angelis , Fabien Gensbittel , Stéphane Villeneuve

We study a toy two-player game for periodic double auction markets to generate liquidity. The game has imperfect information, which allows us to link market spreads with signal strength. We characterize Nash equilibria in cases with or…

Trading and Market Microstructure · Quantitative Finance 2023-08-01 Joffrey Derchu , Dimitrios Kavvathas , Thibaut Mastrolia , Mathieu Rosenbaum

We study the price competition in a duopoly with an arbitrary number of buyers. Each seller can offer multiple units of a commodity depending on the availability of the commodity which is random and may be different for different sellers.…

Computer Science and Game Theory · Computer Science 2016-11-15 Mohammad Hassan Lotfi , Saswati Sarkar

This paper investigates the impacts of competition in autonomous mobility-on-demand systems. By adopting a network-flow based formulation, we first determine the optimal strategies of profit-maximizing platform operators in monopoly and…

Optimization and Control · Mathematics 2021-07-27 Berkay Turan , Mahnoosh Alizadeh

Exchanges acquire excess processing capacity to accommodate trading activity surges associated with zero-sum high-frequency trader (HFT) "duels." The idle capacity's opportunity cost is an externality of low-latency trading. We build a…

Trading and Market Microstructure · Quantitative Finance 2019-07-26 Michael Brolley , Marius Zoican

Decentralized exchanges (DEXes) have introduced an innovative trading mechanism, where it is not necessary to match buy-orders and sell-orders to execute a trade. DEXes execute each trade individually, and the exchange rate is automatically…

Computational Finance · Quantitative Finance 2021-10-12 Lioba Heimbach , Ye Wang , Roger Wattenhofer

We study optimal behavior of energy producers under a CO_2 emission abatement program. We focus on a two-player discrete-time model where each producer is sequentially optimizing her emission and production schedules. The game-theoretic…

Optimization and Control · Mathematics 2010-08-24 Michael Ludkovski

We study a new kind of non-zero-sum stochastic differential game with mixed impulse/switching controls, motivated by strategic competition in commodity markets. A representative upstream firm produces a commodity that is used by a…

Mathematical Finance · Quantitative Finance 2020-06-09 René Aïd , Luciano Campi , Liangchen Li , Mike Ludkovski

We consider a one-sided assignment market or exchange network with transferable utility and propose a model for the dynamics of bargaining in such a market. Our dynamical model is local, involving iterative updates of 'offers' based on…

Computer Science and Game Theory · Computer Science 2015-03-14 Mohsen Bayati , Christian Borgs , Jennifer Chayes , Yashodhan Kanoria , Andrea Montanari

Distributed Nash equilibrium (NE) seeking problem for multi-coalition games has attracted increasing attention in recent years, but the research mainly focuses on the case without agreement demand within coalitions. This paper considers a…

Optimization and Control · Mathematics 2021-12-10 Jialing Zhou , Yuezu Lv , Guanghui Wen , Jinhu Lv , Dezhi Zheng

Decentralized decision making in multi--product firms can lead to efficiency losses when autonomous decision makers fail to internalize cross--product demand interactions. This paper quantifies the magnitude of such losses by analyzing the…

Computer Science and Game Theory · Computer Science 2026-01-27 Boxiao Chen , Jiashuo Jiang , Stefanus Jasin

We consider a situation where wireless service providers compete for heterogenous wireless users. The users differ in their willingness to pay as well as in their individual channel gains. We prove existence and uniqueness of the Nash…

Information Theory · Computer Science 2009-03-12 Vojislav Gajic , Jianwei Huang , Bixio Rimoldi

Decentralized Exchanges (DEXs) are now a significant component of the financial world where billions of dollars are traded daily. Differently from traditional markets, which are typically based on Limit Order Books, DEXs typically work as…

Trading and Market Microstructure · Quantitative Finance 2025-10-28 Daniele Maria Di Nosse , Federico Gatta , Fabrizio Lillo , Sebastian Jaimungal

We consider seeking a Nash equilibrium (NE) of a monotone game, played by dynamic agents which are modeled as a class of lower-triangular nonlinear uncertain dynamics with external disturbances. We establish a general framework that…

Optimization and Control · Mathematics 2025-11-04 Weijian Li , Yutao Tang

Recent regulation on intraday electricity markets has led to the development of shared order books with the intention to foster competition and increase market liquidity. In this paper, we address the question of the efficiency of such…

Trading and Market Microstructure · Quantitative Finance 2025-09-15 René Aïd , Philippe Bergault , Mathieu Rosenbaum

In competitive supply chains (SCs), pricing decisions are crucial, as they directly impact market share and profitability. Traditional SC models often assume continuous pricing for mathematical convenience, overlooking the practical reality…

General Finance · Quantitative Finance 2025-06-24 Gurkirat Wadhwa , Akansh Verma , Veeraruna Kavitha , Priyank Sinha