# Platform Behavior under Market Shocks: A Simulation Framework and Reinforcement-Learning Based Study

arXiv: https://arxiv.org/abs/2203.13395 · HTML: https://mlsanity.com/paper/2203.13395/

## Key facts

- Cited by 2 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 25 Mar 2022.

## Built on by (most cited first, 2 of 2)

- [Understanding Iterative Combinatorial Auction Designs via Multi-Agent Reinforcement Learning](https://mlsanity.com/paper/2402.19420/) (2024)
- [Reinforcement Learning for Safe Occupancy Strategies in Educational Spaces during an Epidemic](https://mlsanity.com/paper/2312.15163/) (2023)

## Abstract (arXiv)

We study the behavior of an economic platform (e.g., Amazon, Uber Eats, Instacart) under shocks, such as COVID-19 lockdowns, and the effect of different regulation considerations imposed on a platform. To this end, we develop a multi-agent Gym environment of a platform economy in a dynamic, multi-period setting, with the possible occurrence of economic shocks. Buyers and sellers are modeled as economically-motivated agents, choosing whether or not to pay corresponding fees to use the platform. We formulate the platform's problem as a partially observable Markov decision process, and use deep reinforcement learning to model its fee setting and matching behavior. We consider two major types of regulation frameworks: (1) taxation policies and (2) platform fee restrictions, and offer extensive simulated experiments to characterize regulatory tradeoffs under optimal platform responses. Our results show that while many interventions are ineffective with a sophisticated platform actor, we identify a particular kind of regulation -- fixing fees to optimal, pre-shock fees while still allowing a platform to choose how to match buyer demands to sellers -- as promoting the efficiency, seller diversity, and resilience of the overall economic system.