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This short review presents a selected history of the mutual fertilization between physics and economics, from Isaac Newton and Adam Smith to the present. The fundamentally different perspectives embraced in theories developed in financial…

General Finance · Quantitative Finance 2015-06-19 D. Sornette

A modified version of a finite random field Ising ferromagnetic model in an external magnetic field at zero temperature is presented to describe group decision making. Fields may have a non-zero average. A postulate of minimum…

Disordered Systems and Neural Networks · Physics 2015-06-25 Serge Galam

Imitative and contrarian behaviors are the two typical opposite attitudes of investors in stock markets. We introduce a simple model to investigate their interplay in a stock market where agents can take only two states, bullish or bearish.…

Statistical Mechanics · Physics 2008-12-02 A. Corcos , J. -P. Eckmann , A. Malaspinas , Y. Malevergne , D. Sornette

Two agents trade an item in a simultaneous offer setting, where the exchange takes place if and only if the buyer's bid price weakly exceeds the seller's ask price. Each agent is randomly assigned the buyer or seller role. Both agents are…

Theoretical Economics · Economics 2025-05-29 José Ignacio Rivero-Wildemauwe

Magnetic domain patterns under an oscillating field is studied theoretically by using a simple Ising-like model. We propose two ways to investigate the effects of the oscillating field. The first one leads to a model in which rapidly…

Other Condensed Matter · Physics 2009-11-13 Kazue Kudo , Katsuhiro Nakamura

It has been observed people tend to have opinions that are far more internally consistent than it would be reasonable to expect. Here, we study how that observation might emerge from changing how agents trust the opinions of their peers in…

Physics and Society · Physics 2020-07-15 Marcelo V. Maciel , André C. R. Martins

In this work, we investigate a biased dollar exchange model with collective debt limit, in which agents picked at random (with a rate depending on the amount of dollars they have) give at random time a dollar to another agent being picked…

Probability · Mathematics 2023-11-15 Fei Cao , Stephanie Reed

In an effort to understand why individuals choose to participate in personally-expensive pro-environmental behaviors, environmental and behavioral economists have examined a moral-motivation model in which the decision to adopt a…

Social and Information Networks · Computer Science 2013-09-26 Gwen Spencer , Richard Howarth

This work models the interconnection of company's investment managers' representations and the market attraction of its shares. The models that reflect the connection of the company's market effectiveness indices and parameters of its…

Portfolio Management · Quantitative Finance 2015-09-17 Valery Vilisov

Two-sided matching markets have long existed to pair agents in the absence of regulated exchanges. A common example is school choice, where a matching mechanism uses student and school preferences to assign students to schools. In such…

Machine Learning · Computer Science 2021-09-17 Stefania Ionescu , Yuhao Du , Kenneth Joseph , Anikó Hannák

We revisit the role of instrumental value as a driver of adaptive behavior. In active inference, instrumental or extrinsic value is quantified by the information-theoretic surprisal of a set of observations measuring the extent to which…

Neurons and Cognition · Quantitative Biology 2020-10-14 Alvaro Ovalle , Simon M. Lucas

We introduce a new Ising-type framework for opinion dynamics that explicitly separates private preferences from publicly expressed binary opinions and naturally incorporates neutral agents. Each individual is endowed with an immutable…

Probability · Mathematics 2026-01-12 Simone Baldassarri , Vanessa Jacquier , Alessandro Zocca

Although data may be abundant, complete data is less so, due to missing columns or rows. This missingness undermines the performance of downstream data products that either omit incomplete cases or create derived completed data for…

Machine Learning · Computer Science 2020-06-26 Haw-minn Lu , Giancarlo Perrone , José Unpingco

The reinforcement learning research area contains a wide range of methods for solving the problems of intelligent agent control. Despite the progress that has been made, the task of creating a highly autonomous agent is still a significant…

Machine Learning · Computer Science 2023-01-25 Artem Latyshev , Aleksandr I. Panov

Multi-agent learning is a promising method to simulate aggregate competitive behaviour in finance. Learning expert agents' reward functions through their external demonstrations is hence particularly relevant for subsequent design of…

Machine Learning · Computer Science 2019-06-13 Jacobo Roa-Vicens , Cyrine Chtourou , Angelos Filos , Francisco Rullan , Yarin Gal , Ricardo Silva

Effective interactions that violate Newton's third law of action-reaction symmetry are common in systems where interactions are mediated by a non-equilibrium environment. Extensive Monte Carlo simulations are carried out on a…

Statistical Mechanics · Physics 2024-03-12 Agney K. Rajeev , A. V. Anil Kumar

We study the effect of inter-band interactions in the absorption profile of a semi-classical model describing electromagnetically induced transparency. We develop a consistent approach using a non-hermitian Hamiltonian to model particle…

Quantum Physics · Physics 2013-04-15 Jose Reslen

In our multi-agent model agents generate wealth from repeated interactions for which a prisoner's dilemma payoff matrix is assumed. Their gains are taxed by a government at a rate $\alpha$. The resulting budget is spent to cover…

Physics and Society · Physics 2021-06-30 Frank Schweitzer , Luca Verginer , Giacomo Vaccario

Using the approach developed in \cite{REFVIC2}, we succeeded in reconstructing the behaviour of the antiferromagnetic Ising model with imaginary magnetic field $i\theta$ for two and three dimensions in the low temperature regime. A…

High Energy Physics - Lattice · Physics 2011-11-28 Vicente Azcoiti , Eduardo Follana , Alejandro Vaquero

In this paper we present a method for deriving effective one-dimensional models based on the matrix product state formalism. It exploits translational invariance to work directly in the thermodynamic limit. We show, how a representation of…

Strongly Correlated Electrons · Physics 2015-06-26 Frederik Keim , Götz S. Uhrig