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We describe a simple model for speculative trading based on adaptive behavior of economic agents.The adaptive behavior is expressed through a feedback mechanism for changing agents' stock-to-bond ratios, depending on the past performance of…

Trading and Market Microstructure · Quantitative Finance 2018-09-26 Misha Perepelitsa

We define and study a rather complex market model, inspired from the Santa Fe artificial market and the Minority Game. Agents have different strategies among which they can choose, according to their relative profitability, with the…

Condensed Matter · Physics 2009-11-07 Irene Giardina , Jean-Philippe Bouchaud

An heuristic model of the society, as an assembly of weakly interacting individuals, is discussed. The model allows to connect macroscopic phenomena with features of relations between individuals. Addressing to the problem of inequality, a…

Biological Physics · Physics 2023-10-16 Vladimir Pokrovskii

In the last decade, stochastic models have shown to be very useful for quantitative modelling of social processes. Here, a configurational master equation for the description of behavioral changes by pair interactions of individuals is…

Statistical Mechanics · Physics 2009-10-31 Dirk Helbing

We study the collective dynamics of a lattice model of stochastically interacting agents with a weighted field of vision. We assume that agents preferentially interact with neighbours, depending on their relative location, through velocity…

Statistical Mechanics · Physics 2024-06-11 Shakti N. Menon , Trilochan Bagarti , Abhijit Chakraborty

The dynamics of many socioeconomic systems is determined by the decision making process of agents. The decision process depends on agent's characteristics, such as preferences, risk aversion, behavioral biases, etc.. In addition, in some…

Statistical Finance · Quantitative Finance 2009-11-13 Gabriella Vaglica , Fabrizio Lillo , Esteban Moro , Rosario N. Mantegna

Agent-based modeling is a computational dynamic modeling technique that may be less familiar to some readers. Agent-based modeling seeks to understand the behaviour of complex systems by situating agents in an environment and studying the…

Multiagent Systems · Computer Science 2023-04-19 G. Wade McDonald , Nathaniel D. Osgood

We present a model of interpersonal comparisons appearing as a generalization of a multi-state model for elements with internal bias. Within this model agents suffering under dissatisfaction compare them with their neighbors. The internal…

Physics and Society · Physics 2007-06-06 Juan G. Diaz Ochoa , Elena Ramirez Barrios

This paper presents a novel study on gas-like models for economic systems. The interacting agents and the amount of exchanged money at each trade are selected with different levels of randomness, from a purely random way to a more chaotic…

Adaptation and Self-Organizing Systems · Physics 2009-01-09 Carmen Pellicer-Lostao , Ricardo Lopez-Ruiz

The kinetic exchange model has gained popularity in the field of statistical mechanics for investigating wealth interaction. Traditionally, kinetic exchange models have been studied without considering preferential interactions. However, in…

Physics and Society · Physics 2023-05-26 Suchismita Banerjee

Agent-based models provide a constructive approach to studying emergent dynamics in life-like systems composed of interacting, adaptive agents. Financial markets serve as a canonical example of such systems, where collective price dynamics…

Computational Finance · Quantitative Finance 2026-04-28 Ryuji Hashimoto , Ryosuke Takata , Masahiro Suzuki , Yuki Tanaka , Kiyoshi Izumi

The effect of the chaotic dynamical states of the agents on the coevolution of cooperation and synchronization in a structured population of the agents remains unexplored. With a view to gaining insights into this problem, we construct a…

Adaptation and Self-Organizing Systems · Physics 2021-02-22 Rohitashwa Chattopadhyay , Shubhadeep Sadhukhan , Sagar Chakraborty

Advances in artificial intelligence often stem from the development of new environments that abstract real-world situations into a form where research can be done conveniently. This paper contributes such an environment based on ideas…

Artificial Intelligence · Computer Science 2022-05-16 Michael Bradley Johanson , Edward Hughes , Finbarr Timbers , Joel Z. Leibo

Phenomena which involves collective choice of many agents who are interacting with each other and choosing one of several alternatives, based on the limited information available to them, frequently show switching between two distinct…

Physics and Society · Physics 2007-05-23 Sitabhra Sinha , S. Raghavendra

We consider the dynamics, existence and stability of the equilibrium states for large populations of individuals who can play various types of non--cooperative games. The players imitate the most attractive strategies, and the choice is…

Adaptation and Self-Organizing Systems · Physics 2012-04-02 Tadeusz Platkowski , Jan Zakrzewski

In open systems, i.e. systems operating in an environment that they cannot control and with components that may join or leave, behaviors can arise as side effects of intensive components interaction. Finding ways to understand and design…

Logic in Computer Science · Computer Science 2016-02-19 Yehia Abd Alrahman , Rocco De Nicola , Michele Loreti

We have numerically simulated the ideal-gas models of trading markets, where each agent is identified with a gas molecule and each trading as an elastic or money-conserving two-body collision. Unlike in the ideal gas, we introduce…

Statistical Mechanics · Physics 2009-11-10 Arnab Chatterjee , Bikas K. Chakrabarti , S. S. Manna

We propose a novel kinetic exchange model differing from previous ones in two main aspects. First, the basic dynamics is modified in order to represent economies where immediate wealth exchanges are carried out, instead of reshufflings or…

General Finance · Quantitative Finance 2015-05-07 Els Heinsalu , Marco Patriarca

In recent years, there has been a proliferation of online gambling sites, which made gambling more accessible with a consequent rise in related problems, such as addiction. Hence, the analysis of the gambling behaviour at both the…

Physics and Society · Physics 2019-07-24 Giuseppe Toscani , Andrea Tosin , Mattia Zanella

We introduce a stochastic agent-based model for the flocking dynamics of self-propelled particles that exhibit velocity-alignment interactions with neighbours within their field of view. The stochasticity in the dynamics of the model arises…

Statistical Mechanics · Physics 2019-07-24 Trilochan Bagarti , Shakti N. Menon