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We consider a financial market model which consists of a financial asset and a large number of interacting agents classified into many types. Different types of agents are heterogeneous in their price expectations. Each agent can change its…

Probability · Mathematics 2008-12-02 Biao Wu

We have developed a sophisticated statistical model for predicting the hitting performance of Major League baseball players. The Bayesian paradigm provides a principled method for balancing past performance with crucial covariates, such as…

Applications · Statistics 2021-07-21 Shane T. Jensen , Blake McShane , Abraham J. Wyner

We consider a nonlinear kinetic equation of Boltzmann type which takes into account the influence of conviction during the formation of opinion in a system of agents which interact through the binary exchanges introduced in [G. Toscani,…

Physics and Society · Physics 2015-12-09 Carlo Brugna , Giuseppe Toscani

This paper is concerned with general spatially explicit versions of three stochastic models for the dynamics of money that have been introduced and studied numerically by statistical physicists: the uniform reshuffling model, the immediate…

Probability · Mathematics 2018-04-18 Nicolas Lanchier , Stephanie Reed

Viral marketing takes advantage of preexisting social networks among customers to achieve large changes in behaviour. Models of influence spread have been studied in a number of domains, including the effect of "word of mouth" in the…

Computer Science and Game Theory · Computer Science 2008-09-08 Hamed Amini , Moez Draief , Marc Lelarge

Trading a financial instrument pushes its price and those of other assets, a phenomenon known as cross-impact. To be of use, cross-impact models must fit data and be well-behaved so they can be applied in applications such as optimal…

Trading and Market Microstructure · Quantitative Finance 2022-03-30 Mehdi Tomas , Iacopo Mastromatteo , Michael Benzaquen

We attempt to explain stock market dynamics in terms of the interaction among three variables: market price, investor opinion and information flow. We propose a framework for such interaction and apply it to build a model of stock market…

General Finance · Quantitative Finance 2014-09-23 Maxim Gusev , Dimitri Kroujiline , Boris Govorkov , Sergey V. Sharov , Dmitry Ushanov , Maxim Zhilyaev

We develop a behavioral asset pricing model in which agents trade in a market with information friction. Profit-maximizing agents switch between trading strategies in response to dynamic market conditions. Due to noisy private information…

Trading and Market Microstructure · Quantitative Finance 2019-05-02 Zhentao Shi , Huanhuan Zheng

Mathematical modelling is a widely used approach to understand and interpret clinical trial data. This modelling typically involves fitting mechanistic mathematical models to data from individual trial participants. Despite the widespread…

We show that financial correlations exhibit a non-trivial dynamic behavior. We introduce a simple phenomenological model of a multi-asset financial market, which takes into account the impact of portfolio investment on price dynamics. This…

Physics and Society · Physics 2009-11-11 Giacomo Raffaelli , Matteo Marsili

A series of accidents caused by crowd within the last decades evoked a lot of scientific interest in modeling the movement of pedestrian crowds. Based on discrete element method, a granular dynamic model, in which human body is simplified…

Physics and Society · Physics 2016-01-19 Peng Lin , Jian Ma , Siuming Lo

Complex dynamical systems driven by the unravelling of information can be modelled effectively by treating the underlying flow of information as the model input. Complicated dynamical behaviour of the system is then derived as an output.…

Physics and Society · Physics 2019-11-05 Dorje C Brody

We introduce and discuss kinetic models of opinion formation on social networks in which the distribution function depends on both the opinion and the connectivity of the agents. The opinion formation model is subsequently coupled with a…

Physics and Society · Physics 2018-08-22 G. Toscani , A. Tosin , M. Zanella

Video popularity is an essential reference for optimizing resource allocation and video recommendation in online video services. However, there is still no convincing model that can accurately depict a video's popularity evolution. In this…

Social and Information Networks · Computer Science 2017-09-22 Jiqiang Wu , Yipeng Zhou , Dah Ming Chiu

We study an optimal execution problem with uncertain market impact to derive a more realistic market model. We construct a discrete-time model as a value function for optimal execution. Market impact is formulated as the product of a…

Trading and Market Microstructure · Quantitative Finance 2015-06-23 Kensuke Ishitani , Takashi Kato

A broad set of empirical phenomenon in the study of social, economic and machine behaviour can be modelled as complex systems with averaging dynamics. However many of these models naturally result in consensus or consensus-like outcomes. In…

Multiagent Systems · Computer Science 2020-07-03 Orowa Sikder

Emergence is a pregnant property in various fields. It is the fact for a phenomenon to appear surprisingly and to be such that it seems at first sight that it is not possible to predict its apparition. That is the reason why it has often…

Computational Complexity · Computer Science 2023-08-23 Hervé Zwirn

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

A general information equilibrium model in the case of ideal information transfer is defined and then used to derive the relationship between supply (information destination) and demand (information source) with the price as the detector of…

Economics · Quantitative Finance 2015-10-09 Jason Smith

Diffusion models are loosely modelled based on non-equilibrium thermodynamics, where \textit{diffusion} refers to particles flowing from high-concentration regions towards low-concentration regions. In statistics, the meaning is quite…

Machine Learning · Computer Science 2023-12-19 Inga Strümke , Helge Langseth
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