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Related papers: Competition between DEXs through Dynamic Fees

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In classical job-scheduling games, each job behaves as a selfish player, choosing a machine to minimize its own completion time. To reduce the equilibria inefficiency, coordination mechanisms are employed, allowing each machine to follow…

Computer Science and Game Theory · Computer Science 2025-02-11 Gilad Lavie , Tami Tamir

We consider a Nash equilibrium between two high-frequency traders in a simple market impact model with transient price impact and additional quadratic transaction costs. Extending a result by Sch\"oneborn (2008), we prove existence and…

Trading and Market Microstructure · Quantitative Finance 2017-05-10 Alexander Schied , Tao Zhang

We studied the behavior and variation of utility between the two conflicting players in a closed Nash-equilibrium loop. Our modeling approach also captured the nexus between optimal premium strategizing and firm performance using the…

Theoretical Economics · Economics 2023-11-21 Leonard Mushunje , David Edmund Allen

This study explores the design of an efficient rebate policy in auction markets, focusing on a continuous-time setting with competition among market participants. In this model, a stock exchange collects transaction fees from auction…

Trading and Market Microstructure · Quantitative Finance 2025-01-23 Thibaut Mastrolia , Tianrui Xu

We study nonzero-sum stochastic switching games. Two players compete for market dominance through controlling (via timing options) the discrete-state market regime $M$. Switching decisions are driven by a continuous stochastic factor $X$…

General Economics · Economics 2018-07-23 Liangchen Li , Michael Ludkovski

In the theory of multi-agent systems, deception refers to the strategic manipulation of information to influence the behavior of other agents, ultimately altering the long-term dynamics of the entire system. Recently, this concept has been…

Systems and Control · Electrical Eng. & Systems 2025-08-27 Michael Tang , Miroslav Krstic , Jorge Poveda

This paper studies a spatial competition game between two firms that sell a homogeneous good at some pre-determined fixed price. A population of consumers is spread out over the real line, and the two firms simultaneously choose location in…

Optimization and Control · Mathematics 2020-01-31 Gaëtan Fournier , Karine Van Der Straeten , Jörgen Weibull

In this paper, we study the Nash dynamics of strategic interplays of n buyers in a matching market setup by a seller, the market maker. Taking the standard market equilibrium approach, upon receiving submitted bid vectors from the buyers,…

Computer Science and Game Theory · Computer Science 2011-03-23 Ning Chen , Xiaotie Deng

The paper deals with a class of parametrized equilibrium problems, where the objectives of the players do possess nonsmooth terms. The respective Nash equilibria can be characterized via a parameter-dependent variational inequality of the…

Optimization and Control · Mathematics 2019-11-06 Jiří V. Outrata , Jan Valdman

This paper studies dynamic monopoly pricing for a broad class of settings that allow for multiple durable, multiple rental, or a mix of varieties. We show that the driving force behind pricing dynamics is the existence of trading-up…

General Economics · Economics 2025-07-09 Stefan Buehler , Nicolas Eschenbaum , Severin Lenhard

Agents attempt to maximize expected profits earned by selling multiple units of a perishable product where their revenue streams are affected by the prices they quote as well as the distribution of other prices quoted in the market by other…

Trading and Market Microstructure · Quantitative Finance 2025-04-16 Ryan Donnelly , Zi Li

We consider an Ito-financial market at which the risky assets' returns are derived endogenously through a market-clearing condition amongst heterogeneous risk-averse investors with quadratic preferences and random endowments. Investors act…

Mathematical Finance · Quantitative Finance 2024-05-24 Michail Anthropelos , Constantinos Stefanakis

Decentralized exchanges (DEXs) provide a means for users to trade pairs of assets on-chain without the need for a trusted third party to effectuate a trade. Amongst these, constant function market maker DEXs such as Uniswap handle the most…

Computer Science and Game Theory · Computer Science 2022-08-29 Zhou Fan , Francisco Marmolejo-Cossío , Ben Altschuler , He Sun , Xintong Wang , David C. Parkes

We study continuous time Bertrand oligopolies in which a small number of firms producing similar goods compete with one another by setting prices. We first analyze a static version of this game in order to better understand the strategies…

Optimization and Control · Mathematics 2010-07-01 Andrew Ledvina , Ronnie Sircar

In this paper, I introduce a profit-maximizing centralized marketplace into a decentralized market with search frictions. Agents choose between the centralized marketplace and the decentralized bilateral trade. I characterize the optimal…

Theoretical Economics · Economics 2021-11-29 Berk Idem

Automated Market Makers (AMMs) are a central component of decentralized exchanges, yet their equilibrium foundations and microeconomic mechanisms remain incompletely understood. This paper develops a dynamic equilibrium framework for…

General Economics · Economics 2026-03-10 Chengqi Zang , Zhenghui Wang , Weitong Zhang

In this paper we present a new competitive packet routing model with edge priorities. We consider players that route selfishly through a network over time and try to reach their destinations as fast as possible. If the number of players who…

Computer Science and Game Theory · Computer Science 2018-08-22 Robert Scheffler , Martin Strehler , Laura Vargas Koch

We study collaborative learning systems in which the participants are competitors who will defect from the system if they lose revenue by collaborating. As such, we frame the system as a duopoly of competitive firms who are each engaged in…

Computer Science and Game Theory · Computer Science 2024-06-25 Mariel Werner , Sai Praneeth Karimireddy , Michael I. Jordan

Decentralized Exchanges (DEXs) are new types of marketplaces leveraging Blockchain technology. They allow users to trade assets with Automatic Market Makers (AMM), using funds provided by liquidity providers, removing the need for order…

Computer Science and Game Theory · Computer Science 2023-02-08 Yogev Bar-On , Yishay Mansour

Two issues of algorithmic collusion are addressed in this paper. First, we show that in a general class of symmetric games, including Prisoner's Dilemma, Bertrand competition, and any (nonlinear) mixture of first and second price auction,…

Theoretical Economics · Economics 2024-09-05 Zhang Xu , Wei Zhao