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An evolving population, in which individual members (`agents') adapt their behaviour according to past experience, is of central importance to many disciplines. Because of their limited knowledge and capabilities, agents are forced to make…
A quite general interaction process of a multi-component system is analysed by the extended effective potential method liberated from usual limitations of perturbation theory or integrable model. The obtained causally complete solution of…
Decision-making individuals often imitate their highest-earning fellows rather than optimize their own utilities, due to bounded rationality and incomplete information. Perpetual fluctuations between decisions have been reported as the…
Human populations exhibit complex behaviors---characterized by long-range correlations and surges in activity---across a range of social, political, and technological contexts. Yet it remains unclear where these collective behaviors come…
Life forms exhibit such a degree of exquisite organization that it seems impossible that they could have developed out of a process of trial and error, as intimated by the theory of Darwinian evolution. In this general public paper I…
Social trends or fashions are spontaneous collective decisions made by large portions of a community, often without an apparent good reason. The spontaneous formation of trends provides a well documented mechanism for the spread of…
Episodes of market crashes have fascinated economists for centuries. Although many academics, practitioners and policy makers have studied questions related to collapsing asset price bubbles, there is little consensus yet about their causes…
Everyone wants clean air, peace and other public goods but is tempted to freeride on others' efforts. The usual way out of this dilemma is to impose norms, maintain reputations and incentivize individuals to contribute. In situations of…
Innovation and obsolescence describe the dynamics of ever-churning social and biological systems, from the development of economic markets to scientific and technological progress to biological evolution. They have been widely discussed,…
This article provides a self-contained overview of the theory of rational asset price bubbles. We cover topics from basic definitions, properties, and classical results to frontier research, with an emphasis on bubbles attached to real…
This is an introduction to the special issue titled "Collective behavior and evolutionary games" that is in the making at Chaos, Solitons & Fractals. The term collective behavior covers many different phenomena in nature and society. From…
We propose a combinatorial model of economic development. An economy develops by acquiring new capabilities allowing for the production of an ever greater variety of products of increasingly complex products. Taking into account that…
Individuals in groups must often choose between acting selfishly and cooperating for the common good. The choices they make are based on their beliefs on how they expect their actions to affect others. We show that for a broad set of…
We develop a mathematical model to describe the persistence of rule-breaking behaviors in societies, such as traffic violations, disregard for legal restrictions and other forms of noncompliance. Using a replicator-type dynamics with…
The tremendous popular success of Chaos Theory shares some common points with the not less fortunate Relativity: they both rely on a misunderstanding. Indeed, ironically , the scientific meaning of these terms for mathematicians and…
In this chapter the complex systems are discussed in the context of economic and business policy and decision making. It will be showed and motivated that social systems are typically chaotic, non-linear and/or non-equilibrium and therefore…
Groups coordinate more effectively when individuals are able to learn from others' successes. But acquiring such knowledge is not always easy, especially in real-world environments where success is hidden from public view. We suggest that…
This paper provides an overview and critical analysis on the modeling and applications of the dynamics of human crowds, where social interactions can have an important influence on the behavioral dynamics of the crowd viewed as a living,…
We integrate dual-process theories of human cognition with evolutionary game theory to study the evolution of automatic and controlled decision-making processes. We introduce a model where agents who make decisions using either automatic or…
The evolution of cooperation has remained an important problem in evolutionary theory and social sciences. In this regard, a curious question is why consistent cooperative and defective personalities exist and if they serve a role in the…