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We present a model of news media that shape consumer beliefs by providing information (signals about an exogenous state) and narratives (models of what determines outcomes). To amplify consumers' engagement, media maximize consumers'…

Theoretical Economics · Economics 2024-03-15 Kfir Eliaz , Ran Spiegler

Using the Minority Game model we study a broad spectrum of problems of market mechanism. We study the role of different types of agents: producers, speculators as well as noise traders. The central issue here is the information flow :…

Statistical Mechanics · Physics 2009-10-31 Damien Challet , Matteo Marsili , Yi-Cheng Zhang

We discuss the stationary states of a model economy in which $N$ heterogeneous adaptive consumers purchase commodity bundles repeatedly from $P$ sellers. The system undergoes a transition from an inefficient to an efficient state as the…

Disordered Systems and Neural Networks · Physics 2009-11-11 Andrea De Martino , Matteo Marsili

We present a macroeconomic agent-based model that combines several mechanisms operating at the same timescale, while remaining mathematically tractable. It comprises enterprises and workers who compete in a job market and a commodity goods…

General Finance · Quantitative Finance 2012-11-26 Cornelia Metzig , Mirta Gordon

We consider a social system of interacting heterogeneous agents with learning abilities, a model close to Random Field Ising Models, where the random field corresponds to the idiosyncratic willingness to pay. Given a fixed price, agents…

Physics and Society · Physics 2009-11-13 Viktoriya Semeshenko , Mirta B. Gordon , Jean-Pierre Nadal

We present our approach to the problem of how an agent, within an economic Multi-Agent System, can determine when it should behave strategically (i.e. learn and use models of other agents), and when it should act as a simple price-taker. We…

Multiagent Systems · Computer Science 2007-05-23 Jose M. Vidal , Edmund H. Durfee

We study a financial model with a non-trivial price impact effect. In this model we consider the interaction of a large investor trading in an illiquid security, and a market maker who is quoting prices for this security. We assume that the…

Pricing of Securities · Quantitative Finance 2009-10-20 David German

Data heterogeneity across multiple sources is common in real-world machine learning (ML) settings. Although many methods focus on enabling a single model to handle diverse data, real-world markets often comprise multiple competing ML…

Computer Science and Game Theory · Computer Science 2025-05-13 Renzhe Xu , Kang Wang , Bo Li

This work addresses the buyer's inspection paradox for information markets. The paradox is that buyers need to access information to determine its value, while sellers need to limit access to prevent theft. To study this, we introduce an…

Artificial Intelligence · Computer Science 2024-03-22 Nasim Rahaman , Martin Weiss , Manuel Wüthrich , Yoshua Bengio , Li Erran Li , Chris Pal , Bernhard Schölkopf

Typically, models with a heterogeneous property are considerably harder to analyze than the corresponding homogeneous models, in which the heterogeneous property is replaced with its average value. In this study we show that any outcome of…

Classical Analysis and ODEs · Mathematics 2012-04-05 Gadi Fibich , Arieh Gavious , Eilon Solan

Nowadays, E-commerce is increasingly integrated into our daily lives. Meanwhile, shopping process has also changed incrementally from one behavior (purchase) to multiple behaviors (such as view, carting and purchase). Therefore, utilizing…

Information Retrieval · Computer Science 2021-09-23 Daqing Wu , Xiao Luo , Zeyu Ma , Chong Chen , Minghua Deng , Jinwen Ma

A class of heterogeneous agent models is investigated where investors switch trading position whenever their motivation to do so exceeds some critical threshold. These motivations can be psychological in nature or reflect behaviour…

Computational Physics · Physics 2009-11-13 R. Cross , M. Grinfeld , H. Lamba , T. Seaman

We discuss a method for predicting financial movements and finding pockets of predictability in the price-series, which is built around inferring the heterogeneity of trading strategies in a multi-agent trader population. This work explores…

Computational Engineering, Finance, and Science · Computer Science 2015-05-13 Nachi Gupta , Raphael Hauser , Neil F. Johnson

We consider a network of interacting agents and we model the process of choice on the adoption of a given innovative product by means of statistical-mechanics tools. The modelization allows us to focus on the effects of direct interactions…

Physics and Society · Physics 2015-02-24 Paolo Sgrignoli , Elena Agliari , Raffaella Burioni , Augusto Schianchi

Different voters behave differently, different governments make different decisions, or different organizations are ruled differently. Many research questions important to political scientists concern choice behavior, which involves dealing…

Methodology · Statistics 2020-11-06 Gerhard Tutz , Ingrid Mauerer

Much research has been conducted on how consumption is related to human relations, for example, consumer communities organized around specific brands, or the way people use products to define their own identity and transmit a desired image.…

Social and Information Networks · Computer Science 2024-01-10 Lizardo Vargas-Bianchi

We present an empirical study of the intertwined behaviour of members in a financial market. Exploiting a database where the broker that initiates an order book event can be identified, we decompose the correlation and response functions…

Trading and Market Microstructure · Quantitative Finance 2012-05-02 Bence Toth , Zoltan Eisler , Fabrizio Lillo , Julien Kockelkoren , Jean-Philippe Bouchaud , J. Doyne Farmer

With the increasing complexity of collaboration among various social entities and user demands, the factors affecting the stable development of the data service market are also growing. These factors include the widespread dissemination of…

Multiagent Systems · Computer Science 2026-05-28 Deyu Zhou , Yuwei Guo , Xudong Lu , Linhao Zhang , Wei Guo , Lizhen Cui

Machine learning models play a key role for service providers looking to gain market share in consumer markets. However, traditional learning approaches do not take into account the existence of additional providers, who compete with each…

Machine Learning · Computer Science 2025-08-15 Ohad Einav , Nir Rosenfeld

Prediction problems in finance go beyond estimating the unknown parameters of a model (e.g. of expected returns). This is because such a model would have to include parameters governing the market participants' propensity to change their…

General Finance · Quantitative Finance 2019-08-20 Matthias Feiler , Thibaut Ajdler