We let "Algorithmic Market-Makers" (AMMs), using Q-learning algorithms, choose prices for a risky asset when their clients are privately informed about the asset payoff. We find that AMMs learn to cope with adverse selection and to update their prices after observing trades, as predicted by...

In the Longstaff-Schwartz Least-Squares Monte Carlo (LSM) method for American option pricing, the early-exercise strategy is based on a regression of future option values on current state variables. The dependence between continuation values and future cash flows results in potential model...

The legal literature on price discrimination focuses primarily on consumers’ immutable features, like when higher interest rates are offered to black borrowers and higher prices to women at car dealerships. This paper examines a different type of discriminatory pricing practice: behavior-based...

Attribute-based pricing---giving a price to potential product attributes individually and allowing customers to choose the attributes that form the final product---has been shown to improve customer satisfaction in the hospitality industry. In this paper, we consider the problem of finding...

Sequential consumption of experiential products gives rise to inter-temporal associations. Developing recommendation algorithms that account for these effects while designing experiences for users can be effective in enhancing user engagement. Using music streaming as the paradigmatic context of...

Companies that try to address inequality in employment face a paradox. Failing to address disparities regarding protected classes in a company’s workforce can result in legal sanctions; but proactive actions to address and avoid such disparities can also face legal scrutiny and sanctions too....

The stock market is a complex and constantly changing system. Relevant information such as financial indices, technical indicators, and financial reports can all affect stock prices. Investors adjust their investment strategies to gain profits by analyzing trends of the stock market. Stock...

Algorithmic management is blamed for its over-standardization effects, which would benefit the platform owners only, and have discriminatory effects. Good practices and norms in the development and deployment of such techniques have been proposed. Here, we posit that 1) over-standardization and...

The advancement of machines and the natural interaction of human emotion play a vital role in the behavioral analysis of humans. Electroencephalography (EEG) has an approach to estimating the mental status of human emotion. The dimension of EEG signal data and complex bands decreases the...