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Efficient and fair trading algorithms in market design environments

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  • Jingsheng Yu
  • Jun Zhang

Abstract

We propose a new method to define trading algorithms in market design environments. Dropping the traditional idea of clearing cycles in generated graphs, we use parameterized linear equations to define trading algorithms. Our method has two advantages. First, our method avoids discussing the details of who trades with whom and how, which can be a difficult question in complex environments. Second, by controlling parameter values in our equations, our method is flexible and transparent to satisfy various fairness criteria. We apply our method to several models and obtain new trading algorithms that are efficient and fair.

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  • Jingsheng Yu & Jun Zhang, 2020. "Efficient and fair trading algorithms in market design environments," Papers 2005.06878, arXiv.org, revised May 2021.
  • Handle: RePEc:arx:papers:2005.06878
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    Cited by:

    1. Han, Xiang, 2024. "A theory of fair random allocation under priorities," Theoretical Economics, Econometric Society, vol. 19(3), July.
    2. Altuntaş, Açelya & Phan, William, 2022. "Trading probabilities along cycles," Journal of Mathematical Economics, Elsevier, vol. 100(C).

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