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arXiv research

A locally-built, LLM-digested index of recent arXiv papers in quant finance, geometry/topology, and statistical ML — keyword search served straight from SQLite on this machine.

168,657 papers · 148 categories

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10213141 · May 202619922001200920172026
48 results for strategic externalities

The paper develops an economic foundation for multi-agent learning in markets.

problem Learning dynamics in markets with strategic externalities.
method A two-phase incentive mechanism that estimates and uses implementable transfers to steer long-run dynamics.
result The mechanism achieves sublinear social-welfare regret and asymptotically optimal welfare under mild rationality and exploration conditions.

This work explains crises in markets without external news using bounded rational agents.

problem Inability to model out-of-equilibrium dynamics in economic markets.
method Modeling bounded rational strategic reasoning in multi-agent market games.
result Bounded rational strategic reasoning can lead to endogenously emerging crises.

Consequential decision-making typically incentivizes individuals to behave strategically, tailoring their behavior to the specifics of the decision rule. A long line of work has therefore sought to counteract strategic behavior by designing more conservative decision boundaries in an effort to increase robustness to th…

2018-08-25abs ↗pdf ↗

We introduce CSE for MLSF games and devise online learning algorithms for achieving no-external Stackelberg-regret.

problem Learning equilibrium in leader-follower games with noisy bandit feedback.
method Proposed Correlated Stackelberg Equilibrium (CSE) and online learning algorithms balancing exploration and exploitation.
result Achieves no-external Stackelberg-regret, converging to approximate CSE.

New analysis shows rational actors will deploy AGI despite negative social value due to catastrophic risk.

problem Rational actors will deploy AGI despite negative social value due to shared catastrophic risk.
method Continuous-time preemption game with shared catastrophic externalities, showing suicide region and welfare distortion.
result The suicide region widens as catastrophic risk grows, and two mechanisms can close it.

Study on learning strategies in adaptive Markov games with policy regret as metric.

problem Learning in dynamic Markov games with adaptive opponents is challenging.
method Introduced policy regret as a new learning metric and developed algorithms for consistent adaptive adversaries.
result Achieved T\sqrt{T} policy regret against certain adaptive adversaries.

Optimizes control interventions in real-world networks using deep-learning and network science.

problem Optimizing control over socioeconomic networks subject to constraints.
method Integrates optimization tools from deep-learning with network science.
result Characterizes vulnerability of corporate networks to takeovers.

Paper generalizes strategic classification framework and introduces SVC for PAC-learning.

problem Strategic manipulation of testing data to fool classifiers.
method Unified framework for strategic classification, strategic VC-dimension (SVC).
result Characterizes the learnability and computational tractability of linear classifiers.

Study strategic dynamic pricing for buyers with unknown manipulation costs.

problem Strategic buyers manipulate their features to get lower prices, hindering profit maximization.
method Proposes a strategic dynamic pricing policy that incorporates strategic behavior and binary response data.
result Achieves sublinear regret bound of O(T)O(\sqrt{T}) compared to linear Ω(T)Ω(T) regret of non-strategic policies.

New framework reduces strategic manipulation cost for minority groups in fair classification.

problem Strategic manipulation disparities in fair classification.
method Constrained optimization framework that constructs classifiers to reduce strategic manipulation cost for minority groups.
result Empirically, the approach reduces strategic manipulation cost for minority groups over multiple real-world datasets.

Study compares employers with and without anticipating strategic labor force responses.

problem Understanding and optimizing strategic interactions in labor markets.
method Formulation of causal strategic classification, theory, and experiments.
result Performatively optimal hiring policies improve employer and labor outcomes, but can also harm labor force utility.

New algorithm learns optimal policies in strategic MDPs with private types.

problem Optimal policy learning in strategic MDPs with private types and information asymmetry.
method PLAN algorithm using instrumental variable regression and pessimism principle.
result PLAN achieves near-optimal policy with 1/K1 / \sqrt{K} optimality.

Deep neural network (DNN) has demonstrated its success in multiple domains. However, DNN models are inherently vulnerable to adversarial examples, which are generated by adding adversarial perturbations to benign inputs to fool the DNN model to misclassify. In this paper, we present a cross-layer strategic ensemble fra…

2019-10-01abs ↗pdf ↗

New findings show strategic interactions can undermine model expressiveness in machine learning.

problem How strategic interactions affect model performance in machine learning.
method Analyzing model expressiveness and strategic interactions in various machine learning settings.
result Optimizing over less expressive model classes can lead to better equilibrium outcomes in strategic environments.

Study allocates resources to strategic agents while balancing cost and incentives.

problem Dynamic allocation of reusable resources to strategic agents with private valuations under long-term cost constraints.
method Incentive-aware framework combining epoch-based lazy updates and randomized exploration rounds.
result Achieves ildeO(T) ilde{\mathcal{O}}(\sqrt{T}) social welfare regret, satisfies all cost constraints, and ensures incentive alignment.

The paper analyzes trading strategies in a competitive market with incomplete information.

problem Strategic trading under uncertainty when firms lack full knowledge of competitors' strategies.
method Bayesian games framework to incorporate uncertainty and derive optimal trading strategies.
result Uncertainty significantly impacts trading strategies compared to complete information scenarios.

Algorithm learns optimal coordination for strategic agents in uncertain settings.

problem Optimizing rewards for strategic agents with private types and actions.
method Combines delaying mechanism, reward angle estimation, and LinUCB algorithm.
result Near optimal regret bound of O~(T)\tilde{O}(\sqrt{T}) for learning optimal policy.

Randomised classifiers outperform deterministic ones in strategic classification.

problem Strategic modification of features by agents in classification tasks.
method Theoretical analysis of randomised classifiers in strategic classification.
result Randomised classifiers can achieve better accuracy than deterministic ones under certain conditions.

OpenAlpha validates decentralized capital strategies using game theory and market aggregation.

problem Decentralized capital management's lack of trust-minimised, adaptive deployment.
method Game-theoretic validation, adversarial auditing, market-based belief aggregation.
result Confidence scores from validation phases inform capital allocation rules.

Study one-shot strategic classification under unknown costs, improving worst-case accuracy.

problem Learning robust decision rules in strategic settings with unknown user costs.
method Formal study of one-shot strategic classification, framing as a minimax problem, designing efficient algorithms for full-batch and stochastic settings.
result Proves efficient algorithms converge to minimax solution, revealing dual norm regularization's value.

Consequential decision-making incentivizes individuals to strategically adapt their behavior to the specifics of the decision rule. While a long line of work has viewed strategic adaptation as gaming and attempted to mitigate its effects, recent work has instead sought to design classifiers that incentivize individuals…

2019-10-23abs ↗pdf ↗

We consider a symmetric multi-players zero-sum game with two strategic variables. There are nn players, n3n\geq 3. Each player is denoted by ii. Two strategic variables are tit_i and sis_i, i{1,,n}i\in \{1, \dots, n\}. They are related by invertible functions. Using the minimax theorem by \cite{sion} we will show that Nas…

2018-06-17abs ↗pdf ↗

We study a strategic version of the multi-armed bandit problem, where each arm is an individual strategic agent and we, the principal, pull one arm each round. When pulled, the arm receives some private reward vav_a and can choose an amount xax_a to pass on to the principal (keeping vaxav_a-x_a for itself). All non-pulle…

2017-06-27abs ↗pdf ↗

COBRA addresses strategic behavior in online platforms by ensuring truthful reporting without monetary incentives.

problem Ensuring truthful reporting from strategic agents in online platforms.
method Proposes COBRA, an algorithm for contextual bandits involving strategic agents that disincentivizes strategic behavior.
result COBRA achieves sub-linear regret guarantee and incentive compatibility without monetary incentives.

Optimal dividend strategy with irreversible reinsurance constraints.

problem Maximizing dividends while adhering to ratcheting and irreversible reinsurance constraints.
method Modeling dividend and reinsurance levels as nondecreasing processes, solving Hamilton-Jacobi-Bellman equation.
result Threshold strategy is optimal for maximizing discounted dividends until ruin.

The results of a learning process depend on the input data. There are cases in which an adversary can strategically tamper with the input data to affect the outcome of the learning process. While some datasets are difficult to attack, many others are susceptible to manipulation. A resourceful attacker can tamper with l…

2019-01-16abs ↗pdf ↗

This paper deals with the explicit design of strategy formulations to make the best strategic choices from a conventional matrix form of representing strategic choices. The explicit strategy formulation is an analytical model which is targeted to provide a mathematical strategy framework to find the best moment for str…

2019-08-15abs ↗pdf ↗

The paper tackles performative policy learning with strategic agents, improving scalability and generalizability.

problem Strategic agents adjust their features in response to a released policy, causing endogenous distribution shifts.
method Relaxing parametric assumptions, the paper uncovers a low-dimensional structure in distribution shifts and proposes a gradient-based policy optimization algorithm.
result The proposed algorithm achieves high sample efficiency and provides theoretical guarantees for convergence.

Strategic brokers exploit private information in broker-mediated markets, affecting informed traders' performance.

problem Strategic interactions and information leakage in broker-mediated markets.
method Study of strategic trading behavior and information leakage in a broker-mediated market.
result Brokers hold a strategic advantage over informed traders due to information leakage in trading flows.

This paper tackles online strategic decision making with asymmetry and knowledge transportability.

problem Strategic decision making with information asymmetry and knowledge transportability challenges.
method Developed a sample-efficient algorithm for online learning under these conditions.
result Proved sample complexity of O(1/ε2)O(1/ε^2) for learning an εε-optimal policy.

User strategization undermines algorithmic trustworthiness.

problem User strategic behavior corrupts algorithmic data and trust.
method Modeling user-platform interactions as a game, analyzing strategic behavior's short-term benefits and long-term harms.
result User strategization can initially benefit platforms but ultimately harms their ability to make accurate decisions.

Algorithms are often used to produce decision-making rules that classify or evaluate individuals. When these individuals have incentives to be classified a certain way, they may behave strategically to influence their outcomes. We develop a model for how strategic agents can invest effort in order to change the outcome…

2018-07-13abs ↗pdf ↗

A cased-based reasoning method predicts rare events on strategic sites using satellite imagery.

problem Manual prediction of rare events on strategic sites is impractical due to large datasets.
method Case-based reasoning approach incorporating expert knowledge for irregular time series and small datasets.
result The method significantly outperforms random selection on challenging applications.

New findings link causal models to strategic classification, improving robustness and alignment.

problem Strategic adaptation by users in classification tasks.
method Causal models to bound worst-case out-of-distribution risk.
result Causal classification optimizes classification error after adaptation under certain noise conditions.

New algorithm prevents strategic replication in multi-armed bandit problems.

problem Strategic replication by agents can exploit bandit algorithms' balance.
method Designs Hierarchical UCB (H-UCB) and Robust Hierarchical UCB (RH-UCB) algorithms.
result Achieves O(lnT)O(\ln T)-regret and sublinear regret in realistic scenarios.

Bayesian inference reconstructs external potentials in DFT for many-particle systems.

problem Reconstructing external potentials in classical density-functional theory (DFT) for many-particle systems.
method Combines Bayesian inference with classical DFT to probabilistically reconstruct external potentials.
result Accurately infers external potentials and density profiles with uncertainty quantification.

Much research has been conducted arguing that tipping points at which complex systems experience phase transitions are difficult to identify. To test the existence of tipping points in financial markets, based on the alternating offer strategic model we propose a network of bargaining agents who mutually either coopera…

2015-09-16abs ↗pdf ↗