Recent work on complex adaptive systems for modeling financialmarkets is surveyed. Financia1 markets areviewed as evolutionary systems between different, competing tradingstrategies. Agents are boundedly rational inthe sense that they tend to follow strategies that have performedwell, according...

We consider a setting where a platform must dynamically allocate a collection of goods that arrive to the platform in an online fashion to budgeted buyers, as exempli ed by online advertising systems where platforms decide which impressions to serve to various advertisers. Such dynamic resource...

The emergence of high frequency trading has resulted in `bursts' of orders arriving at an exchange (nearly) simultaneously, yet most electronic financial exchanges implement the continuous limit order book which requires processing of orders serially. Contrary to an assumption that appears...

This paper examines how the anchoring effect causes investor underreaction to global firm-specific news. Using a high-frequency methodology to identify news events for stocks in 23 developed countries from 2004 to 2021, the results show that investors tend to hold on to their initial beliefs...

This paper points out an empirical failing of real business cycle models in which unemployment is endogenized through a matching function. One can easily choose a calibration to make the cyclical fluctuation in unemployment as large in the model as it is in the data, or to make the response of...

We study the attitude of decision makers to skewed noise. For a binary lottery that yields the better outcome with probability p, we identify noise around p, with a compound lottery that induces a distribution over the exact value of the probability and has an average value p. We propose and...