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There are two reasons why uncertainty may not be adequately described by Probability Theory. The first one is due to unique or nearly-unique events, that either never realized or occurred too seldom for frequencies to be reliably measured.…

Artificial Intelligence · Computer Science 2023-03-17 Florian Ellsaesser , Guido Fioretti , Gail E. James

Following the thermodynamic formulation of multifractal measure that was shown to be capable of detecting large fluctuations at an early stage, here we propose a new index which permits us to distinguish events like financial crisis in real…

Statistical Finance · Quantitative Finance 2014-12-05 Eder Lucio Fonseca , Fernando F. Ferreira , Paulsamy Muruganandam , Hilda A. Cerdeira

Cooperation is central to the success of human societies as it is crucial for overcoming some of the most pressing social challenges of our time. Yet how human cooperation is achieved and may persist is still a main puzzle in the social and…

Physics and Society · Physics 2018-09-13 John Realpe-Gómez , Giulia Andrighetto , Gustavo Nardin , Javier Antonio Montoya

Explainably estimating confidence in published scholarly work offers opportunity for faster and more robust scientific progress. We develop a synthetic prediction market to assess the credibility of published claims in the social and…

Human populations exhibit complex behaviors---characterized by long-range correlations and surges in activity---across a range of social, political, and technological contexts. Yet it remains unclear where these collective behaviors come…

Physics and Society · Physics 2020-05-07 Christopher W. Lynn , Lia Papadopoulos , Daniel D. Lee , Danielle S. Bassett

A major impact of globalization has been the information flow across the financial markets rendering them vulnerable to financial contagion. Research has focused on network analysis techniques to understand the extent and nature of such…

Statistical Finance · Quantitative Finance 2019-11-15 Sayantan Banerjee , Kousik Guhathakurta

The understanding of complex systems has become a central issue because complex systems exist in a wide range of scientific disciplines. Time series are typical experimental results we have about complex systems. In the analysis of such…

Statistical Finance · Quantitative Finance 2012-02-09 Michael C. Münnix , Takashi Shimada , Rudi Schäfer , Francois Leyvraz Thomas H. Seligman , Thomas Guhr , H. E. Stanley

Fatigue failure can be thought by studying the collective motions of defects inside materials instead of focusing on the growth of a pre-existing micro-crack. An experimental study of the statistical distribution of acoustic emissions…

Adaptation and Self-Organizing Systems · Physics 2010-11-03 C. Dunand-Chatellet , Z. Moumni

We provide direct evidence of market manipulation at the beginning of the financial crisis in November 2007. The type of manipulation, a "bear raid," would have been prevented by a regulation that was repealed by the Securities and Exchange…

General Finance · Quantitative Finance 2012-01-04 Vedant Misra , Marco Lagi , Yaneer Bar-Yam

In this paper, we present the possibility of using the Ising like models to explain by Statistical Physics means the connection between the financial discontinuities (herd behavior, bubbles, crashes) and "critical points" in physical of…

Statistical Mechanics · Physics 2007-05-23 Dorina Andru Vangheli , Gheorghe Ardelean

We study the predictability of large events in self-organizing systems. We focus on a set of models which have been studied as analogs of earthquake faults and fault systems, and apply methods based on techniques which are of current…

Condensed Matter · Physics 2009-10-22 S. L. Pepke , J. M. Carlson

Financial models do not merely analyse markets, but actively shape them. This effect, known as performativity, describes how financial theories and the subsequent actions based on them influence market processes, by creating self-fulfilling…

Trading and Market Microstructure · Quantitative Finance 2026-02-19 Charalampos Kleitsikas , Stefanos Leonardos , Carmine Ventre

Many classical models of collective behavior assume that emergent dynamics result from external and observable interactions among individuals. However, how collective dynamics in human populations depend on the internal psychological…

Physics and Society · Physics 2024-09-27 Alice C Schwarze , Mari Kawakatsu , Sarah Iams , Nina H Fefferman , Tahra L Eissa

This paper deals with the modeling of social competition, possibly resulting in the onset of extreme conflicts. More precisely, we discuss models describing the interplay between individual competition for wealth distribution that, when…

Mathematical Physics · Physics 2014-03-17 Nicola Bellomo , Miguel A. Herrero , Andrea Tosin

The fixed-event forecasting setup is common in economic policy. It involves a sequence of forecasts of the same (`fixed') predictand, so that the difficulty of the forecasting problem decreases over time. Fixed-event point forecasts are…

Econometrics · Economics 2024-03-21 Fabian Krüger , Hendrik Plett

The spreading dynamics of an epidemic and the collective behavioral pattern of the population over which it spreads are deeply intertwined and the latter can critically shape the outcome of the former. Motivated by this, we design a…

Populations and Evolution · Quantitative Biology 2021-08-25 Mengbin Ye , Lorenzo Zino , Alessandro Rizzo , Ming Cao

Anchoring is a term used in psychology to describe the common human tendency to rely too heavily (anchor) on one piece of information when making decisions. A trading algorithm inspired by biological motors, introduced by L. Gil\cite{Gil},…

Trading and Market Microstructure · Quantitative Finance 2008-12-10 Jorgen Vitting Andersen

A large variety of complex systems in ecology, climate science, biomedicine and engineering have been observed to exhibit tipping points, where the internal dynamical state of the system abruptly changes. For example, such critical…

Physics and Society · Physics 2015-03-06 Christian Kuehn , Erik A. Martens , Daniel Romero

In the aftermath of the financial crisis, the growing literature on financial networks has widely documented the predictive power of topological characteristics (e.g. degree centrality measures) to explain the systemic impact or systemic…

General Finance · Quantitative Finance 2021-10-27 Yérali Gandica , Sophie Béreau , Jean-Yves Gnabo

For both investors and policymakers, forecasting the stock market is essential as it serves as an indicator of economic well-being. To this end, we harness the power of social media data, a rich source of public sentiment, to enhance the…

Machine Learning · Computer Science 2023-10-31 Shengkun Wang , YangXiao Bai , Kaiqun Fu , Linhan Wang , Chang-Tien Lu , Taoran Ji
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