Section: Application Domains

Economics

Recent years have seen intense cross-fertilization between OT and various problems arising in economics. The principal-agent problem with adverse selection is particularly important in modern microeconomics, mathematically it consists in minimizing a certain integral cost functional among the set of $c$-concave functions, this problem is convex under some conditions related to the MTW regularity theory for OT as shown in the important paper [116]. Other examples of fruitful interactions between mathematical economics concern multi-marginal OT and multi-populations matching [93], or games with a continuum of agents and Cournot-Nash equilibria [64]. The team has as strong expertise, both numerical and theoretical in the field of variational problems subject to a convexity constraint and their applications to the principal-agent problem. Our expertise in numerical OT and entropic regularization will also enable us to develop efficient solvers for realistic matching and hedonic pricing models.