Stock exchange operators compete for order flow by setting "make" fees for limit orders and "take" fees for market orders. When traders quote continuous prices, they can choose prices that perfectly neutralize any fee division, and traders stream to the exchange with the lowest total fee. The...

We present a quantum solution to coordination problems that can be implemented with existing technologies. It provides an alternative to existing approaches, which rely on explicit communication, prior commitment or trusted third parties. This quantum mechanism applies to a variety of scenarios...

We study the endogenous dynamics of reputations in a system consisting of firms with long horizons that provide goods or services with varying levels of quality, and large numbers of customers who assign to them reputations on the basis of the quality levels that they experience when interacting...

We use computers to study economics, but few people realize that we can use economics to study and design computational systems. The reason is that computer networks can be regarded as a community of processes that in their interactions, strategies and lack of perfect knowledge, face the same...