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This Chapter reviews statistical models for the probability distribution of money developed in the econophysics literature since the late 1990s. In these models, economic transactions are modeled as random transfers of money between the…

Statistical Finance · Quantitative Finance 2012-04-10 Victor M. Yakovenko

Firm clusters are seen as having a positive effect on innovations, what can be interpreted as economies of scale or knowledge spillovers. The processes underlying the success of these clusters remain difficult to isolate. We propose in this…

Multiagent Systems · Computer Science 2022-09-01 Juste Raimbault

In our simplified description `wealth' is money ($m$). A kinetic theory of gas like model of money is investigated where two agents interact (trade) selectively and exchange some amount of money between them so that sum of their money is…

Physics and Society · Physics 2008-12-02 Abhijit Kar Gupta

The distribution of wealth among the members of a society is herein assumed to result from two fundamental mechanisms, trade and investment. An empirical distribution of wealth shows an abrupt change between the low-medium range, that may…

Statistical Mechanics · Physics 2008-12-02 Nicola Scafetta , Sergio Picozzi , Bruce J. West

Urban income segregation is a widespread phenomenon that challenges societies across the globe. Classical studies on segregation have largely focused on the geographic distribution of residential neighborhoods rather than on patterns of…

Social and Information Networks · Computer Science 2020-04-21 Xiaowen Dong , Alfredo J. Morales , Eaman Jahani , Esteban Moro , Bruno Lepri , Burcin Bozkaya , Carlos Sarraute , Yaneer Bar-Yam , Alex Pentland

We develop an agent-based model on a lattice to investigate territorial development motivated by markings such as graffiti, generalizing a previously-published model to account for $K$ groups instead of two groups. We then analyze this…

Physics and Society · Physics 2021-04-27 Abdulaziz Alsenafi , Alethea B. T. Barbaro

This paper considers the ideal gas-like model of trading markets, where each individual is identified as a gas molecule that interacts with others trading in elastic or money-conservative collisions. Traditionally this model introduces…

General Finance · Quantitative Finance 2009-06-13 Carmen Pellicer-Lostao , Ricardo Lopez-Ruiz

We develop a two-region economic geography model with vertical innovations that improve the quality of manufactured varieties produced in each region. The chance of innovation depends on the \emph{related variety}, i.e. the importance of…

Theoretical Economics · Economics 2024-04-16 José M. Gaspar , Minoru Osawa

Most social, technological and biological networks are embedded in a finite dimensional space, and the distance between two nodes influences the likelihood that they link to each other. Indeed, in social systems, the chance that two…

Physics and Society · Physics 2018-06-27 Paul Balister , Chaoming Song , Oliver Riordan , Bela Bollobas , Albert-Laszlo Barabasi

Social interactions determine many economic behaviors, but information on social ties does not exist in most publicly available and widely used datasets. We present results on the identification of social networks from observational panel…

Econometrics · Economics 2023-10-12 Aureo de Paula , Imran Rasul , Pedro Souza

In this paper, we propose a novel approach that employs kinetic equations to describe the collective dynamics emerging from graph-mediated pairwise interactions in multi-agent systems. We formally show that for large graphs and specific…

Physics and Society · Physics 2026-05-15 Marco Nurisso , Matteo Raviola , Andrea Tosin

Increasingly, a huge amount of statistics have been gathered which clearly indicates that income and wealth distributions in various countries or societies follow a robust pattern, close to the Gibbs distribution of energy in an ideal gas…

General Finance · Quantitative Finance 2009-11-13 Arnab Chatterjee , Bikas K. Chakrabarti

The transition to turbulence via spatiotemporal intermittency is investigated in the context of coupled maps defined on small-world networks. The local dynamics is given by the Chat\'e-Manneville minimal map previously used in studies of…

Chaotic Dynamics · Physics 2009-11-07 M. G. Cosenza , K. Tucci

The dynamics of competing opinions in social network play an important role in society, with many applications in diverse social contexts as consensus, elections, morality and so on. Here we study a model of interacting agents connected in…

Physics and Society · Physics 2022-09-29 Antonio Mihara , Anderson A. Ferreira , André C. R. Martins , Fernando F. Ferreira

This paper proposes networked dynamics to solve resource allocation problems over time-varying multi-agent networks. The state of each agent represents the amount of used resources (or produced utilities) while the total amount of resources…

Systems and Control · Electrical Eng. & Systems 2022-07-26 Mohammadreza Doostmohammadian , Alireza Aghasi , Mohammad Pirani , Ehsan Nekouei , Usman A. Khan , Themistoklis Charalambous

There are multiple explanations for stylized facts in high-frequency trading, including adaptive and informed agents, many of which have been studied through agent-based models. This paper investigates an alternative explanation by…

Computational Finance · Quantitative Finance 2025-08-29 Mateusz Wilinski , Juho Kanniainen

In this short paper we define the wealth process in a spin model for market microstructure, for individual agents and in aggregate. The agents in our model try to balance their desire to belong to the local majority (herding behavior),…

Probability · Mathematics 2008-12-02 Ted Theodosopoulos , Ming Yuen

This paper is concerned with a model in econophysics, the subfield of statistical physics that applies concepts from traditional physics to economics. In our model, economical agents are represented by the vertices of a connected graph and…

Probability · Mathematics 2017-04-25 Nicolas Lanchier , Stephanie Reed

We study the well-known sociological phenomenon of gang aggregation and territory formation through an interacting agent system defined on a lattice. We introduce a two-gang Hamiltonian model where agents have red or blue affiliation but…

Mathematical Physics · Physics 2015-06-11 Alethea B. T. Barbaro , Lincoln Chayes , Maria R. D'Orsogna

Spatially embedded networks are shaped by a combination of purely topological (space-independent) and space-dependent formation rules. While it is quite easy to artificially generate networks where the relative importance of these two…

Physics and Society · Physics 2013-09-10 Franco Ruzzenenti , Francesco Picciolo , Riccardo Basosi , Diego Garlaschelli