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We suggest that the broad distribution of time scales in financial markets could be a crucial ingredient to reproduce realistic price dynamics in stylised Agent-Based Models. We propose a fractional reaction-diffusion model for the dynamics…

Mathematical Finance · Quantitative Finance 2018-03-14 Michael Benzaquen , Jean-Philippe Bouchaud

We have studied numerically the statistical mechanics of the dynamic phenomena, including money circulation and economic mobility, in some transfer models. The models on which our investigations were performed are the basic model proposed…

Physics and Society · Physics 2008-12-02 Yougui Wang , Ning Ding

We present a novel microscopic stock market model consisting of a large number of random agents modeling traders in a market. Each agent is characterized by a set of parameters that serve to make iterated predictions of two successive…

Adaptation and Self-Organizing Systems · Physics 2009-11-07 R. Rothenstein , K. Pawelzik

We investigate the fluctuations around the average density profile in the weakly asymmetric exclusion process with open boundaries in the steady state. We show that these fluctuations are given, in the macroscopic limit, by a centered…

Other Condensed Matter · Physics 2009-11-11 B. Derrida , C. Enaud , C. Landim , S. Olla

The Wright-Fisher model is the most popular population model for describing the behaviour of evolutionary systems with a finite population size. Approximations to the model have commonly been used for the analysis of time-resolved genome…

Populations and Evolution · Quantitative Biology 2016-11-21 Nuno R. Nené , Ville Mustonen , Christopher J. R. Illingworth

In this paper we introduce a model describing diffusion of species by a suitable regularization of a "forward-backward" parabolic equation. In particular, we prove existence and uniqueness of solutions, as well as continuous dependence on…

Analysis of PDEs · Mathematics 2015-08-14 Elena Bonetti , Pierluigi Colli , Giuseppe Tomassetti

A statistical mechanics theory for a fluid stratified in density is presented. The predicted statistical equilibrium state is the most probable outcome of turbulent stirring. The slow temporal evolution of the vertical density profile is…

Fluid Dynamics · Physics 2014-09-23 Antoine Venaille , Louis Gostiaux , Joël Sommeria

In the spirit of the macroscopic crowd motion models with hard congestion (i.e. a strong density constraint $\rho\leq 1$) introduced by Maury {\it et al.} some years ago, we analyze a variant of the same models where diffusion of the agents…

Analysis of PDEs · Mathematics 2016-03-03 Alpár Richárd Mészáros , Filippo Santambrogio

We present the unified market-based description of returns and variances of the trades with shares of a particular security, of the trades with shares of all securities in the market, and of the trades with the market portfolio. We consider…

General Economics · Economics 2025-10-16 Victor Olkhov

We propose a model of random walks on weighted graphs where the weights are interval valued, and connect it to reversible imprecise Markov chains. While the theory of imprecise Markov chains is now well established, this is a first attempt…

Optimization and Control · Mathematics 2016-09-20 Damjan Škulj

In this paper, we introduce quantile coherency to measure general dependence structures emerging in the joint distribution in the frequency domain and argue that this type of dependence is natural for economic time series but remains…

Statistics Theory · Mathematics 2018-12-31 Jozef Baruník , Tobias Kley

Starting with stochastic rate equations for the fundamental interactions between microbes and their viruses, we derive a mean field theory for the population dynamics of microbe-virus systems, including the effects of lysogeny. In the…

Populations and Evolution · Quantitative Biology 2015-05-18 Zhenyu Wang , Nigel Goldenfeld

We study the limit of the joint distribution of a multidimensional Generalized Tempered Stable (GTS) process and its quadratic covariation process when the stable index tends to two. Under a proper scaling, the GTS processes converges to a…

Probability · Mathematics 2025-04-24 Masaaki Fukasawa , Mikio Hirokane

We present a novel reshuffling exchange model and investigate its long time behavior. In this model, two individuals are picked randomly, and their wealth $X_i$ and $X_j$ are redistributed by flipping a sequence of fair coins leading to a…

Probability · Mathematics 2023-01-02 Fei Cao , Nicholas F. Marshall

We use a continuous-time random walk (CTRW) to model market fluctuation data from times when traders experience excessive losses or excessive profits. We analytically derive "superstatistics" that accurately model empirical market activity…

Statistical Finance · Quantitative Finance 2016-10-12 Mateusz Denys , Maciej Jagielski , Tomasz Gubiec , Ryszard Kutner , H. Eugene Stanley

Financial markets are a typical example of complex systems where interactions between constituents lead to many remarkable features. Here, we show that a pairwise maximum entropy model (or auto-logistic model) is able to describe switches…

Statistical Finance · Quantitative Finance 2014-01-28 Thomas Bury

Dynamic jumps in the price and volatility of an asset are modelled using a joint Hawkes process in conjunction with a bivariate jump diffusion. A state space representation is used to link observed returns, plus nonparametric measures of…

Applications · Statistics 2016-03-10 Worapree Maneesoonthorn , Catherine S. Forbes , Gael M. Martin

We consider a continuous-time financial market with an asset whose price is modeled by a linear stochastic differential equation with drift and volatility switching driven by a uniformly ergodic jump Markov process with a countable state…

Probability · Mathematics 2025-01-14 Vitaliy Golomoziy , Kamil Kladivko , Yuliya Mishura

We consider the task of filtering a dynamic parameter evolving as a diffusion process, given data collected at discrete times from a likelihood which is conjugate to the marginal law of the diffusion, when a generic dual process on a…

Probability · Mathematics 2023-11-29 Guillaume Kon Kam King , Andrea Pandolfi , Marco Piretto , Matteo Ruggiero

Existence of stochastic financial equilibria giving rise to semimartingale asset prices is established under a general class of assumptions. These equilibria are expressed in real terms and span complete markets or markets with withdrawal…

Pricing of Securities · Quantitative Finance 2008-12-02 Gordan Zitkovic