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The Boltzmann distribution predicts the collective behavior of systems at thermodynamic equilibrium as a function of their constituent parts. Yet most systems in nature are not at equilibrium, and a unified theory of their behavior does not…

Statistical Mechanics · Physics 2018-10-16 Milo M. Lin

We propose some kinetic models of wealth exchange and investigate their behavior on directed networks though numerical simulations. We observe that network topology and directedness yields a variety of interesting features in these models.…

Physics and Society · Physics 2009-11-13 Arnab Chatterjee

Some general features of kinetic multi-agent models are reviewed, with particular attention to the relation between the agent saving propensities and the form of the equilibrium wealth distribution. The effect of a finite cutoff of the…

Physics and Society · Physics 2013-03-19 Marco Patriarca , Anirban Chakraborti , Guido Germano

We introduce an auto-regressive model which captures the growing nature of realistic markets. In our model agents do not trade with other agents, they interact indirectly only through a market. Change of their wealth depends, linearly on…

General Finance · Quantitative Finance 2009-07-28 Urna Basu , P. K. Mohanty

We introduce a simple stochastic dynamics for game theory. It assumes ``local'' rationality in the sense that any player climbs the gradient of his utility function in the presence of a stochastic force which represents deviation from…

Statistical Mechanics · Physics 2008-11-23 Matteo Marsili , Yi-Cheng Zhang

Many interesting phenomena in nature are described by stochastic processes with irreversible dynamics. To model these phenomena, we focus on a master equation or a Fokker-Planck equation with rates which violate detailed balance. When the…

Statistical Mechanics · Physics 2016-10-11 R K P Zia , Jeffrey B Weiss , Dibyendu Mandal , Baylor Fox-Kemper

We study the model of interacting agents proposed by Chatterjee et al that allows agents to both save and exchange wealth. Closed equations for the wealth distribution are developed using a mean field approximation. We show that when all…

Other Condensed Matter · Physics 2009-11-10 Przemyslaw Repetowicz , Stefan Hutzler , Peter Richmond

Gambles are random variables that model possible changes in monetary wealth. Classic decision theory transforms money into utility through a utility function and defines the value of a gamble as the expectation value of utility changes.…

Economics · Quantitative Finance 2016-02-03 Ole Peters , Murray Gell-Mann

Evolutionary game theory is a framework to formalize the evolution of collectives ("populations") of competing agents that are playing a game and, after every round, update their strategies to maximize individual payoffs. There are two…

Adaptation and Self-Organizing Systems · Physics 2021-01-05 Sergey Denisov , Olga Vershinina , Juzar Thingna , Peter Hänggi , Mikhail Ivanchenko

We study two kinds of economic exchange, additive and multiplicative, in a system of N agents. The work is divided in two parts, in the first one, the agents are free to interact with each other. The system evolves to a Boltzmann-Gibbs…

Trading and Market Microstructure · Quantitative Finance 2010-10-07 Christian H. Sanabria , R. Huerta-Quintanilla , M. Rodriguez-Achach

In this communication, the derivation of the Boltzmann-Gibbs and the Maxwellian distributions is presented from a geometrical point of view under the hypothesis of equiprobability. It is shown that both distributions can be obtained by…

Chaotic Dynamics · Physics 2010-01-20 Ricardo Lopez-Ruiz , Jaime Sanudo , Xavier Calbet

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

A simple kinematical argument suggests that the classical approximation may be inadequate to describe the evolution of a system with an anisotropic particle distribution. In order to verify this quantitatively, we study the Boltzmann…

High Energy Physics - Phenomenology · Physics 2015-10-28 Thomas Epelbaum , Francois Gelis , Sangyong Jeon , Guy Moore , Bin Wu

We consider the general model of zero-sum repeated games (or stochastic games with signals), and assume that one of the players is fully informed and controls the transitions of the state variable. We prove the existence of the uniform…

Optimization and Control · Mathematics 2009-04-20 Jérôme Renault

We introduce the notion of exchangeable equilibria of a symmetric bimatrix game, defined as those correlated equilibria in which players' strategy choices are conditionally independently and identically distributed given some hidden…

Computer Science and Game Theory · Computer Science 2014-01-21 Noah D. Stein , Asuman Ozdaglar , Pablo A. Parrilo

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 consider here a Fokker--Planck equation with variable coefficient of diffusion which appears in the modeling of the wealth distribution in a multi-agent society. At difference with previous studies, to describe a society in which agents…

Mathematical Finance · Quantitative Finance 2017-09-29 Marco Torregrossa , Giuseppe Toscani

Animal behavior and evolution can often be described by game-theoretic models. Although in many situations, the number of players is very large, their strategic interactions are usually decomposed into a sum of two-player games. Only…

Populations and Evolution · Quantitative Biology 2007-05-23 Dominik Kaminski , Jacek Miekisz , Marcin Zaborowski

We consider a simplified version of the Wealth Game, which is an agent-based financial market model with many interesting features resembling the real stock market. Market makers are not present in the game so that the majority traders are…

Physics and Society · Physics 2010-09-24 W. Y. Cheung , K. Y. Michael Wong

The Boltzmann and Gibbs approaches to statistical mechanics have very different definitions of equilibrium and entropy. The problems associated with this are discussed and it is suggested that they can be resolved, to produce a version of…

Statistical Mechanics · Physics 2007-10-11 David A. Lavis