Erwin J. Sacoto-Cabrera, Luis Guijarro, Jose R. Vidal
et al.
The provision of services by more than one operator over a common network infrastructure, as enabled by 5G network slicing, is analyzed. Two business models to be implemented by a network operator, who owns the network, and a virtual operator, who does not, are proposed. In one business model, named \emph{strategic}, the network operator provides service to its user base and the virtual operator provides service to its user base and pays a per-subscriber fee to the network operator. In the other business model, named \emph{monopolistic}, the network operator provides service to both user bases. The two proposals are analyzed by means of a model that captures both system and economic features. As regards the systems features, the slicing of the network is modeled by means of a Discriminatory Processor Sharing queue. As regards the economic features, the incentives are modeled by means of the user utilities and the operators' revenues; and game theory is used to model the strategic interaction between the users' subscription decision and the operators' pricing decision. In both business models, it is shown that the network operator can be provided with the appropriate economic incentives so that it acquiesces in serving the virtual operator's user base (monopolistic model) and in allowing the virtual operator to provide service over the network operator's infrastructure (strategic model). From the point of view of the users, the strategic model results in a higher subscription rate than the monopolistic model.
A burgeoning literature in economics studies how people form beliefs about the causal structures linking economic variables, and what happens when those beliefs are mistaken. We survey this research and connect it to a rich literature in cognitive science. After providing an accessible introduction to causal Directed Acyclic Graphs, the dominant modeling approach, we review theory and evidence addressing three nested questions: how individuals reason within a fully parameterized causal structure, how they estimate its parameters, and how they learn such structures to begin with. We then discuss methodological challenges and review applications in microeconomics, macroeconomics, political economy, and business.
Directly training Large Language Models (LLMs) for Multi-Agent Systems (MAS) remains challenging due to intricate reward modeling, dynamic agent interactions, and demanding generalization requirements. This paper explores whether post-training techniques, specifically Supervised Fine-Tuning (SFT) and Reinforcement Learning with Verifiable Rewards (RLVR), can effectively $\textit{generalize}$ to multi-agent scenarios. We use economic reasoning as a testbed, leveraging its strong foundations in mathematics and game theory, its demand for structured analytical reasoning, and its relevance to real-world applications such as market design, resource allocation, and policy analysis. We introduce $\textbf{Recon}$ ($\textbf{R}$easoning like an $\textbf{ECON}$omist), a 7B-parameter open-source LLM post-trained on a hand-curated dataset of 2,100 high-quality economic reasoning problems. Comprehensive evaluation on economic reasoning benchmarks and multi-agent games reveals clear improvements in structured reasoning and economic rationality. These results underscore the promise of domain-aligned post-training for enhancing reasoning and agent alignment, shedding light on the roles of SFT and RL in shaping model behavior. Code is available at https://github.com/MasterZhou1/Recon .
This paper presents Piggyback Camera, an easy-to-deploy system for visual surveillance using commercial robot vacuums. Rather than requiring access to internal robot systems, our approach mounts a smartphone equipped with a camera and Inertial Measurement Unit (IMU) on the robot, making it applicable to any commercial robot without hardware modifications. The system estimates robot poses through neural inertial navigation and efficiently captures images at regular spatial intervals throughout the cleaning task. We develop a novel test-time data augmentation method called Rotation-Augmented Ensemble (RAE) to mitigate domain gaps in neural inertial navigation. A loop closure method that exploits robot cleaning patterns further refines these estimated poses. We demonstrate the system with an object mapping application that analyzes captured images to geo-localize objects in the environment. Experimental evaluation in retail environments shows that our approach achieves 0.83 m relative pose error for robot localization and 0.97 m positional error for object mapping of over 100 items.
Tyler J Poore, Christopher J Pinard, Aleena Shabbir
et al.
Large language models (LLMs) are increasingly used in clinical settings, yet their performance in veterinary medicine remains underexplored. We evaluated three commercially available veterinary-focused LLM summarization tools (Product 1 [Hachiko] and Products 2 and 3) on a standardized dataset of veterinary oncology records. Using a rubric-guided LLM-as-a-judge framework, summaries were scored across five domains: Factual Accuracy, Completeness, Chronological Order, Clinical Relevance, and Organization. Product 1 achieved the highest overall performance, with a median average score of 4.61 (IQR: 0.73), compared to 2.55 (IQR: 0.78) for Product 2 and 2.45 (IQR: 0.92) for Product 3. It also received perfect median scores in Factual Accuracy and Chronological Order. To assess the internal consistency of the grading framework itself, we repeated the evaluation across three independent runs. The LLM grader demonstrated high reproducibility, with Average Score standard deviations of 0.015 (Product 1), 0.088 (Product 2), and 0.034 (Product 3). These findings highlight the importance of veterinary-specific commercial LLM tools and demonstrate that LLM-as-a-judge evaluation is a scalable and reproducible method for assessing clinical NLP summarization in veterinary medicine.
Information technology is in the midst of a revolution in which omnipresent data collection and machine learning are impacting the human world as never before. The word ``intelligence'' is being used as a North Star for the development of this technology, with human cognition viewed as a baseline. This view neglects the fact that humans are social animals and that much of our intelligence is social and cultural in origin. Moreover, failing to properly situate aspects of intelligence at the social level contributes to the treatment of the societal consequences of technology as an afterthought. The path forward is not merely more data and compute, and not merely more attention paid to cognitive or symbolic representations, but a thorough blending of economic and social concepts with computational and inferential concepts at the level of algorithm design.
We investigate the distributed online economic dispatch problem for power systems with time-varying coupled inequality constraints. The problem is formulated as a distributed online optimization problem in a multi-agent system. At each time step, each agent only observes its own instantaneous objective function and local inequality constraints; agents make decisions online and cooperate to minimize the sum of the time-varying objectives while satisfying the global coupled constraints. To solve the problem, we propose an algorithm based on the primal-dual approach combined with constraint-tracking. Under appropriate assumptions that the objective and constraint functions are convex, their gradients are uniformly bounded, and the path length of the optimal solution sequence grows sublinearly, we analyze theoretical properties of the proposed algorithm and prove that both the dynamic regret and the constraint violation are sublinear with time horizon T. Finally, we evaluate the proposed algorithm on a time-varying economic dispatch problem in power systems using both synthetic data and Australian Energy Market data. The results demonstrate that the proposed algorithm performs effectively in terms of tracking performance, constraint satisfaction, and adaptation to time-varying disturbances, thereby providing a practical and theoretically well-supported solution for real-time distributed economic dispatch.
This paper studies a regression model with functional dependent and explanatory variables, both of which exhibit nonstationary dynamics. The model assumes that the nonstationary stochastic trends of the dependent variable are explained by those of the explanatory variables, and hence that there exists a stable long-run relationship between the two variables despite their nonstationary behavior. We also assume that the functional observations may be error-contaminated. We develop novel autocovariance-based estimation and inference methods for this model. The methodology is broadly applicable to economic and statistical functional time series with nonstationary dynamics. To illustrate our methodology and its usefulness, we apply it to evaluating the global economic impact of climate change, an issue of intrinsic importance.
Alessandro Calvia, Fausto Gozzi, Marta Leocata
et al.
We introduce a spatial economic growth model where space is described as a network of interconnected geographic locations and we study a corresponding finite-dimensional optimal control problem on a graph with state constraints. Economic growth models on networks are motivated by the nature of spatial economic data, which naturally possess a graph-like structure: this fact makes these models well-suited for numerical implementation and calibration. The network setting is different from the one adopted in the related literature, where space is modeled as a subset of a Euclidean space, which gives rise to infinite dimensional optimal control problems. After introducing the model and the related control problem, we prove existence and uniqueness of an optimal control and a regularity result for the value function, which sets up the basis for a deeper study of the optimal strategies. Then, we focus on specific cases where it is possible to find, under suitable assumptions, an explicit solution of the control problem. Finally, we discuss the cases of networks of two and three geographic locations.
This study investigates the factors that influence the capital adequacy of commercial banks in Bangladesh using panel data from 28 banks over the period of 2013-2019. Three analytical methods, including the Fixed Effect model, Random Effect model, and Pooled Ordinary Least Square (POLS) method, are employed to analyze two versions of the capital adequacy ratio, namely the Capital Adequacy Ratio (CAR) and Tier 1 Capital Ratio. The study reveals that capital adequacy is significantly affected by several independent variables, with leverage and liquidity risk having a negative and positive relationship, respectively. Additionally, the study finds a positive correlation between real GDP and net profit and capital adequacy, while inflation has a negative correlation. For the Tier 1 Ratio, the study shows no significant relationship betweenleverage and liquidity risk, but a positive correlation with the number of employees, net profit, and real GDP, while a negative correlation with size and GDP deflator. Pooled OLS analysis reveals a negative correlation with leverage, size, and inflation for both CAR and Tier 1 Capital Ratio, and a positive correlation with liquidity risk, net profit, and real GDP. Based on the Hausman test, the Random Effect model is deemed moresuitable for this dataset. These findings have important implications for policymakers, investors, and bank managers in Bangladesh by providing insights into the factors that impact the capital ratios of commercial banks.
This paper presents discrete convex analysis as a tool for economics and game theory. Discrete convex analysis is a new framework of discrete mathematics and optimization, developed during the last two decades. Recently, it is being recognized as a powerful tool for analyzing economic or game models with indivisibilities. The main feature of discrete convex analysis is the distinction of two convexity concepts, M-convexity and L-convexity, for functions in integer or binary variables, together with their conjugacy relationship. The crucial fact is that M-concavity, or its variant called M-natural-concavity, is equivalent to the (gross) substitutes property in economics. Fundamental theorems in discrete convex analysis such as the M-L conjugacy theorems, discrete separation theorems and discrete fixed point theorems yield structural results in economics such as the existence of equilibria and the lattice structure of equilibrium price vectors. Algorithms in discrete convex analysis give iterative auction algorithms as well as computational methods for equilibria.
In the last decades, global awareness towards the importance of diverse representation has been increasing. Lack of diversity and discrimination toward minorities did not skip the film industry. Here, we examine ethnic bias in the film industry through commercial posters, the industry's primary advertisement medium for decades. Movie posters are designed to establish the viewer's initial impression. We developed a novel approach for evaluating ethnic bias in the film industry by analyzing nearly 125,000 posters using state-of-the-art deep learning models. Our analysis shows that while ethnic biases still exist, there is a trend of reduction of bias, as seen by several parameters. Particularly in English-speaking movies, the ethnic distribution of characters on posters from the last couple of years is reaching numbers that are approaching the actual ethnic composition of US population. An automatic approach to monitor ethnic diversity in the film industry, potentially integrated with financial value, may be of significant use for producers and policymakers.
Hysteresis is treated as a history dependent branching, and the use of the classical Preisach model for the analysis of macroeconomic hysteresis is first discussed. Then, a new Preisach-type model is introduced as a macroeconomic aggregation of more realistic microeconomic hysteresis than in the case of the classical Preisach model. It is demonstrated that this model is endowed with a more general mechanism of branching and may account for the continuous evolution of the economy and its effect on hysteresis. Furthermore, it is shown that the sluggishness of economic recovery is an intrinsic manifestation of hysteresis branching.
Federated learning (FL) becomes popular and has shown great potentials in training large-scale machine learning (ML) models without exposing the owners' raw data. In FL, the data owners can train ML models based on their local data and only send the model updates rather than raw data to the model owner for aggregation. To improve learning performance in terms of model accuracy and training completion time, it is essential to recruit sufficient participants. Meanwhile, the data owners are rational and may be unwilling to participate in the collaborative learning process due to the resource consumption. To address the issues, there have been various works recently proposed to motivate the data owners to contribute their resources. In this paper, we provide a comprehensive review for the economic and game theoretic approaches proposed in the literature to design various schemes for stimulating data owners to participate in FL training process. In particular, we first present the fundamentals and background of FL, economic theories commonly used in incentive mechanism design. Then, we review applications of game theory and economic approaches applied for incentive mechanisms design of FL. Finally, we highlight some open issues and future research directions concerning incentive mechanism design of FL.
District energy systems can not only reduce energy consumption but also set energy supply dispatching schemes according to demand. In this paper, the combined cooling heating and power economic emission dispatch (CCHPEED) model is established with the objective of economic cost, primary energy consumption, and pollutant emissions, as well as three decision-making strategies, are proposed to meet the demand for energy supply. Besides, a generalized differential evolution with the best compromise solution processing mechanism (BCS-GDE) is proposed to solve the model, also, the best compromise solution processing mechanism is put forward in the algorithm. In the simulation, the resource dispatching is performed according to the different energy demands of hotels, offices, and residential buildings on the whole day. The simulation results show that the model established in this paper can reduce the economic cost, energy consumption, and pollutant emission, in which the maximum reduction rate of economic cost is 72%, the maximum reduction rate of primary energy consumption is 73%, and the maximum reduction rate of pollutant emission is 88%. Concurrently, BCS-GDE also has better convergence and diversity than the classic algorithms.
We introduce the Clockwork Finance Framework (CFF), a general purpose, formal verification framework for mechanized reasoning about the economic security properties of composed decentralized-finance (DeFi) smart contracts. CFF features three key properties. It is contract complete, meaning that it can model any smart contract platform and all its contracts--Turing complete or otherwise. It does so with asymptotically constant model overhead. It is also attack-exhaustive by construction, meaning that it can automatically and mechanically extract all possible economic attacks on users' cryptocurrency across modeled contracts. Thanks to these properties, CFF can support multiple goals: economic security analysis of contracts by developers, analysis of DeFi trading risks by users, fees UX, and optimization of arbitrage opportunities by bots or miners. Because CFF offers composability, it can support these goals with reasoning over any desired set of potentially interacting smart contract models. We instantiate CFF as an executable model for Ethereum contracts that incorporates a state-of-the-art deductive verifier. Building on previous work, we introduce extractable value (EV), a new formal notion of economic security in composed DeFi contracts that is both a basis for CFF and of general interest. We construct modular, human-readable, composable CFF models of four popular, deployed DeFi protocols in Ethereum: Uniswap, Uniswap V2, Sushiswap, and MakerDAO, representing a combined 24 billion USD in value as of March 2022. We use these models along with some other common models such as flash loans, airdrops and voting to show experimentally that CFF is practical and can drive useful, data-based EV-based insights from real world transaction activity. Without any explicitly programmed attack strategies, CFF uncovers on average an expected $56 million of EV per month in the recent past.
Photometric variability of a directly imaged exo-Earth conveys spatial information on its surface and can be used to retrieve a two-dimensional geography and axial tilt of the planet (spin-orbit tomography). In this study, we relax the assumption of the static geography and present a computationally tractable framework for dynamic spin-orbit tomography applicable to the time-varying geography. First, a Bayesian framework of static spin-orbit tomography is revisited using analytic expressions of the Bayesian inverse problem with a Gaussian prior. We then extend this analytic framework to a time-varying one through a Gaussian process in time domain, and present analytic expressions that enable efficient sampling from a full joint posterior distribution of geography, axial tilt, spin rotation period, and hyperparameters in the Gaussian-process priors. Consequently, it only takes 0.3 s for a laptop computer to sample one posterior dynamic map conditioned on the other parameters with 3,072 pixels and 1,024 time grids, for a total of $\sim 3 \times 10^6$ parameters. We applied our dynamic mapping method on a toy model and found that the time-varying geography was accurately retrieved along with the axial-tilt and spin rotation period. In addition, we demonstrated the use of dynamic spin-orbit tomography with a real multi-color light curve of the Earth as observed by the Deep Space Climate Observatory. We found that the resultant snapshots from the dominant component of a principle component analysis roughly captured the large-scale, seasonal variations of the clear-sky and cloudy areas on the Earth.
Justifying draconian measures during the Covid-19 pandemic was difficult not only because of the restriction of individual rights, but also because of its economic impact. The objective of this work is to present a machine learning approach to identify regions that should implement similar health policies. For that end, we successfully developed a system that gives a notion of economic impact given the prediction of new incidental cases through unsupervised learning and time series forecasting. This system was built taking into account computational restrictions and low maintenance requirements in order to improve the system's resilience. Finally this system was deployed as part of a web application for simulation and data analysis of COVID-19, in Colombia, available at (https://covid19.dis.eafit.edu.co).
The Hodrick-Prescott (HP) filter is one of the most widely used econometric methods in applied macroeconomic research. Like all nonparametric methods, the HP filter depends critically on a tuning parameter that controls the degree of smoothing. Yet in contrast to modern nonparametric methods and applied work with these procedures, empirical practice with the HP filter almost universally relies on standard settings for the tuning parameter that have been suggested largely by experimentation with macroeconomic data and heuristic reasoning. As recent research (Phillips and Jin, 2015) has shown, standard settings may not be adequate in removing trends, particularly stochastic trends, in economic data. This paper proposes an easy-to-implement practical procedure of iterating the HP smoother that is intended to make the filter a smarter smoothing device for trend estimation and trend elimination. We call this iterated HP technique the boosted HP filter in view of its connection to $L_{2}$-boosting in machine learning. The paper develops limit theory to show that the boosted HP (bHP) filter asymptotically recovers trend mechanisms that involve unit root processes, deterministic polynomial drifts, and polynomial drifts with structural breaks. A stopping criterion is used to automate the iterative HP algorithm, making it a data-determined method that is ready for modern data-rich environments in economic research. The methodology is illustrated using three real data examples that highlight the differences between simple HP filtering, the data-determined boosted filter, and an alternative autoregressive approach. These examples show that the bHP filter is helpful in analyzing a large collection of heterogeneous macroeconomic time series that manifest various degrees of persistence, trend behavior, and volatility.