{"paper":{"title":"Does Financial Trading Smooth Non-Convex Markets?","license":"http://arxiv.org/licenses/nonexclusive-distrib/1.0/","headline":"","cross_cats":["cs.SY","econ.GN","eess.SY","q-fin.EC"],"primary_cat":"math.OC","authors_text":"Martial Toniotti, Nicolas Stevens, Peter Cramton","submitted_at":"2026-07-07T14:17:36Z","abstract_excerpt":"In non-convex markets, a competitive equilibrium may fail to exist. This turns out to be an important issue in real-world non-convex auction markets, such as electricity markets, as it complicates pricing and requires the auctioneer to resort to out-of-market discriminatory side payments to sustain an equilibrium. We investigate whether the introduction of convex financial trading induces a smoothing effect, mitigating the issues arising from non-convexities. We develop a two-stage non-convex market model (a forward market followed by a spot market) in which convex financial traders participat"},"claims":{"count":0,"items":[],"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57"},"source":{"id":"2607.06316","kind":"arxiv","version":1},"verdict":{"id":null,"model_set":{},"created_at":null,"strongest_claim":"","one_line_summary":"","pipeline_version":null,"weakest_assumption":"","pith_extraction_headline":""},"integrity":{"clean":true,"summary":{"advisory":0,"critical":0,"by_detector":{},"informational":0},"endpoint":"/pith/2607.06316/integrity.json","findings":[],"available":true,"detectors_run":[],"snapshot_sha256":"c28c3603d3b5d939e8dc4c7e95fa8dfce3d595e45f758748cecf8e644a296938"},"references":{"count":0,"sample":[],"resolved_work":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57","internal_anchors":0},"formal_canon":{"evidence_count":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57"},"author_claims":{"count":0,"strong_count":0,"snapshot_sha256":"258153158e38e3291e3d48162225fcdb2d5a3ed65a07baac614ab91432fd4f57"},"builder_version":"pith-number-builder-2026-05-17-v1"}