Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Inventory Management for High-Frequency Trading with Imperfect
  Competition   We study Nash equilibria for inventory-averse high-frequency traders (HFTs),
who trade to exploit information about future price changes. For discrete
trading rounds, the HFTs' optimal trading strategies and their equilibrium
price impact are described by a system of nonlinear equations; explicit
solutions obtain around the continuous-time limit. Unlike in the risk-neutral
case, the optimal inventories become mean-reverting and vanish as the number of
trading rounds becomes large. In contrast, the HFTs' risk-adjusted profits and
the equilibrium price impact converge to their risk-neutral counterparts.
Compared to a social-planner solution for cooperative HFTs, Nash competition
leads to excess trading, so that marginal transaction taxes in fact decrease
market liquidity.

18
The categories of this paper are: econ
14
The categories of this paper are: math-ph
26
The categories of this paper are: bayes-an
37
The categories of this paper are: supr-con
3
The categories of this paper are: physics
34
The categories of this paper are: chem-ph
16
The categories of this paper are: stat
21
The categories of this paper are: adap-org
4
The categories of this paper are: cond-mat
6
The categories of this paper are: astro-ph
29
The categories of this paper are: funct-an
5
The categories of this paper are: gr-qc
35
The categories of this paper are: mtrl-th
27
The categories of this paper are: comp-gas
2
The categories of this paper are: math
33
The categories of this paper are: plasm-ph