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This paper examines how the observability of demand shocks influences pricing patterns and market outcomes when firms delegate pricing decisions to Q-learning algorithms. Simulations show that demand observability induces Q-learning agents…

General Economics · Economics 2025-12-09 Zexin Ye

Risk aggregation is a popular method used to estimate the sum of a collection of financial assets or events, where each asset or event is modelled as a random variable. Applications, in the financial services industry, include insurance,…

Artificial Intelligence · Computer Science 2015-06-04 Peng Lin

In this paper, we reconsider the spin model suggested recently to understand some features of collective decision making among higher organisms [A.T. Hartnett et al., Phys. Rev. Lett. 116 (2016) 038701]. Within the model, the state of an…

Statistical Mechanics · Physics 2023-06-28 Petro Sarkanych , Mariana Krasnytska , Luis Gómez-Nava , Pawel Romanczuk , Yurij Holovatch

As the complexity and dynamism of financial markets continue to grow, traditional financial risk prediction methods increasingly struggle to handle large datasets and intricate behavior patterns. This paper explores the feasibility and…

Machine Learning · Computer Science 2024-12-24 Haowei Yang , Zhan Cheng , Zhaoyang Zhang , Yuanshuai Luo , Shuaishuai Huang , Ao Xiang

As the size of modern data sets exceeds the disk and memory capacities of a single computer, machine learning practitioners have resorted to parallel and distributed computing. Given that optimization is one of the pillars of machine…

Machine Learning · Statistics 2019-12-10 Biyi Fang , Diego Klabjan

Artificial Intelligence (AI) is one of the most transformative technologies of the 21st century. The extent and scope of future AI capabilities remain a key uncertainty, with widespread disagreement on timelines and potential impacts. As…

Artificial Intelligence · Computer Science 2023-11-27 Kyle A. Kilian , Christopher J. Ventura , Mark M. Bailey

We propose a novel class of dynamic shrinkage processes for Bayesian time series and regression analysis. Building upon a global-local framework of prior construction, in which continuous scale mixtures of Gaussian distributions are…

Methodology · Statistics 2019-07-02 Daniel R. Kowal , David S. Matteson , David Ruppert

This paper considers optimization problems over networks where agents have individual objectives to meet, or individual parameter vectors to estimate, subject to subspace constraints that require the objectives across the network to lie in…

Multiagent Systems · Computer Science 2020-04-22 Roula Nassif , Stefan Vlaski , Ali H. Sayed

Anticipating and adapting to failures is a key capability robots need to collaborate effectively with humans in complex domains. This continues to be a challenge despite the impressive performance of state of the art AI planning systems and…

Prediction of events in financial markets is every investor's dream and, usually, wishful thinking. From a more general, economic and societal viewpoint, the identification of indicators for large events is highly desirable to assess…

Risk Management · Quantitative Finance 2022-08-11 Anton J. Heckens , Thomas Guhr

The main aim of this work is to incorporate selected findings from behavioural finance into a Heterogeneous Agent Model using the Brock and Hommes (1998) framework. Behavioural patterns are injected into an asset pricing framework through…

General Finance · Quantitative Finance 2015-06-05 Jiri Kukacka , Jozef Barunik

We consider a group of Bayesian agents who try to estimate a state of the world $\theta$ through interaction on a social network. Each agent $v$ initially receives a private measurement of $\theta$: a number $S_v$ picked from a Gaussian…

Applications · Statistics 2018-04-24 Elchanan Mossel , Noah Olsman , Omer Tamuz

Market instability has been extensively studied using mathematical approaches to characterize complex trading dynamics and detect structural change points. This study explores the potential for early warning of market instability by…

Physics and Society · Physics 2026-04-24 Mariko I. Ito , Hiroyuki Hasada , Yudai Honma , Takaaki Ohnishi , Tsutomu Watanabe , Kazuyuki Aihara

Distributed aggregative optimization underpins many cooperative optimization and multi-agent control systems, where each agent's objective function depends both on its local optimization variable and an aggregate of all agents' optimization…

Systems and Control · Electrical Eng. & Systems 2026-03-30 Ziqin Chen , Yongqiang Wang

This study introduces GCO-HPIF, a general machine-learning-based framework to predict and explain the computational hardness of combinatorial optimization problems that can be represented on graphs. The framework consists of two stages. In…

Machine Learning · Computer Science 2025-12-25 Bharat Sharman , Elkafi Hassini

We consider several estimation and learning problems that networked agents face when making decisions given their uncertainty about an unknown variable. Our methods are designed to efficiently deal with heterogeneity in both size and…

Applications · Statistics 2016-11-11 M. Amin Rahimian , Ali Jadbabaie

By a high-order numerical homogenization method, a heterogeneous multiscale scheme was developed in Jin & Li (2022) for evolving differential equations containing two time scales. In this paper, we further explore the technique to propose…

Numerical Analysis · Mathematics 2025-09-25 Bojin Chen , Zeyu Jin , Ruo Li

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

Controlling multi-agent systems is a persistent challenge in organismal, robotic and social collectives, especially when agents exhibit stochastic indecisiveness -- frequently switching between conflicting behavioral rules. Here, we…

Physics and Society · Physics 2025-05-01 Tuhin Chakrabortty , Saad Bhamla

This thesis presents the theoretical, conceptual and methodological aspects that support the modeling of dynamical systems (DS) by using several agents. The modeling approach permits the assessment of properties representing order, change,…

Multiagent Systems · Computer Science 2016-06-03 Nelson Fernandez