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Concave Pro-rata Games: Relaxing strict concavity

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Authors:

(1) Nicholas A. G. Johnson ([email protected]);

(2) Theo Diamandis ([email protected]);

(3) Alex Evans ([email protected]);

(4) Henry de Valence ([email protected]);

(5) Guillermo Angeris ([email protected]).

Table of Links

Abstract and Introduction

1 The concave pro-rata game

1.1 Symmetric pure strict equilibrium

1.2 Uniqueness of equilibrium

1.3 Equilibrium payoff

2 Batched decentralized exchanges

2.1 Arbitrage

3 Conclusion and References


A Numerics

B Additional Numerics

C Relaxing strict concavity

D Rosen condition

C Relaxing strict concavity


The statement above follows from the negation of both (a) and (b). This equivalence has a simple interpretation: if the point (0, 0) is collinear with any other two points on the graph of f, {(s, f(s)) | s > 0}, then the function f is a piecewise function with a linear segment starting at 0. The converse of this is that if the function f has no linear segment around 0 (i.e., every linear over estimator around 0 lies strictly above f) then any chord must lie strictly below the function.



This paper is available on arxiv under CC BY 4.0 DEED license.


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