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We look at the meaning of 'relaxation' in the wealth exchange models that are recently proposed in Econophysics to interpret the wealth distributions. To quantify and characterise the process of relaxation, we define an appropriate quantity…

General Finance · Quantitative Finance 2008-12-02 Abhijit KarGupta

We introduce and study a non-equilibrium continuous-time dynamical model of the price of a single asset traded by a population of heterogeneous interacting agents in the presence of uncertainty and regulatory constraints. The model takes…

Adaptation and Self-Organizing Systems · Physics 2009-04-23 V. I. Yukalov , D. Sornette , E. P. Yukalova

Smart active matter has the ability to control its motion guided by individual policies to achieve collective goals. We introduce a theoretical framework to study a decentralized learning process in which agents can locally exchange…

Statistical Mechanics · Physics 2025-07-08 Gerhard Jung , Misaki Ozawa , Eric Bertin

We study risk-sharing economies where heterogenous agents trade subject to quadratic transaction costs. The corresponding equilibrium asset prices and trading strategies are characterised by a system of nonlinear, fully-coupled…

Portfolio Management · Quantitative Finance 2020-10-01 Martin Herdegen , Johannes Muhle-Karbe , Dylan Possamaï

In this paper, we present a model describing the collective motion of birds. The model introduces spontaneous changes in direction which are initialized by few agents, here referred as leaders, whose influence act on their nearest…

Numerical Analysis · Mathematics 2024-06-21 Giacomo Albi , Federica Ferrarese

Economy is demanding new models, able to understand and predict the evolution of markets. To this respect, Econophysics is offering models of markets as complex systems, such as the gas-like model, able to predict money distributions…

Chaotic Dynamics · Physics 2010-08-05 Carmen Pellicer-Lostao , Ricardo Lopez-Ruiz

Chaos and nonlinear economic dynamics are addressed for a quantum coupled map lattice model of an artificial economy, with quantized supply and demand equilibrium conditions. The measure theoretic properties and the patterns that emerge in…

Chaotic Dynamics · Physics 2012-03-01 Carlos Pedro Gonçalves

In this work we use an inelastic scattering process of particles to propose a model able to reproduce the salient features of the wealth distribution in an economy by including taxes to each trading process and redistributing that collected…

General Finance · Quantitative Finance 2008-12-02 Sebastian D. Guala

We address the issue of the distribution of firm size. To this end we propose a model of firms in a closed, conserved economy populated with zero-intelligence agents who continuously move from one firm to another. We then analyze the size…

General Finance · Quantitative Finance 2011-12-12 Anindya S. Chakrabarti

We develop a formalism to study linearized perturbations around the equilibria of a pure exchange economy. With the use of mean field theory techniques, we derive equations for the flow of products in an economy driven by heterogeneous…

Trading and Market Microstructure · Quantitative Finance 2015-05-13 Samuel E. Vazquez , Simone Severini

We have studied here the self-organising features of the dynamics of a model market, where the agents `trade' for a single commodity with their money. The model market consists of fixed numbers of economic agents, money supply and…

Statistical Mechanics · Physics 2009-10-31 Anirban Chakraborti , Srutarshi Pradhan , Bikas K. Chakrabarti

We introduce a simple model of economy, where the time evolution is described by an equation capturing both exchange between individuals and random speculative trading, in such a way that the fundamental symmetry of the economy under an…

Condensed Matter · Physics 2007-05-23 Jean-Philippe Bouchaud , Marc Mezard

We introduce a kinetic model that couples the movement of a population of individuals with the dynamics of a pathogen in the same population. We consider that transmission occurs when a susceptible and an infectious individual are…

Analysis of PDEs · Mathematics 2026-01-30 Carolina Strecht-Fernandes , Fabio A. C. C. Chalub

We study a class of heterogeneous agent-based models which are based on a basic set of principles, and the most fundamental operations of an economic system: trade and product transformations. A basic guiding principle is scale invariance,…

Trading and Market Microstructure · Quantitative Finance 2009-02-24 Samuel E. Vazquez

The conventional economic approaches explore very little about the dynamics of the economic systems. Since such systems consist of a large number of agents interacting nonlinearly they exhibit the properties of a complex system. Therefore…

General Physics · Physics 2012-04-01 B. G. Sharma , Sadhana Agrawal , Malti Sharma , D. P. Bisen , Ravi Sharma

The distribution of wealth among the members of a society is herein assumed to result from two fundamental mechanisms, trade and investment. An empirical distribution of wealth shows an abrupt change between the low-medium range, that may…

Statistical Mechanics · Physics 2008-12-02 Nicola Scafetta , Sergio Picozzi , Bruce J. West

Simple agent based exchange models are a commonplace in the study of wealth distribution of artificial societies. Generally, each agent is characterized by its wealth and by a risk-aversion factor, and random exchanges between agents allow…

Adaptation and Self-Organizing Systems · Physics 2009-11-11 G. M. Caon , S. Goncalves , J. R. Iglesias

A financial market is a system resulting from the complex interaction between participants in a closed economy. We propose a minimal microscopic model of the financial market economy based on the real economy's symmetry constraint and…

Physics and Society · Physics 2022-06-15 Liu Ziyin , Katsuya Ito , Kentaro Imajo , Kentaro Minami

We propose a simple market model where agents trade different types of products with each other by using money, relying only on local information. Value fluctuations of single products, combined with the condition of maximum profit in…

Condensed Matter · Physics 2015-06-24 Raul Donangelo , Alex Hansen , Kim Sneppen , Sergio R. Souza

In this thesis, we investigate the emergence of kinetic processes in finite quantum systems. We first generalize the Redfield theory to describe the dynamics of a small quantum system weakly interacting with an environment of finite heat…

Statistical Mechanics · Physics 2009-09-29 Massimiliano Esposito