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Scaling properties in financial fluctuations are reviewed from the standpoint of statistical physics. We firstly show theoretically that the balance of demand and supply enhances fluctuations due to the underlying phase transition…

Statistical Mechanics · Physics 2008-12-10 H. Takayasu , M. Takayasu , M. P. Okazaki , K. Marumo , T. Shimizu

Traffic fluctuation has so far been studied on unweighted networks. However many real traffic systems are better represented as weighted networks, where nodes and links are assigned a weight value representing their physical properties such…

Statistical Mechanics · Physics 2011-11-11 Yichao Zhang , Shi Zhou , Zhongzhi Zhang , Jihong Guan , Shuigeng Zhou , Guanrong Chen

A growing trend for information technology is to not just react to changes, but anticipate them as much as possible. This paradigm made modern solutions, such as recommendation systems, a ubiquitous presence in today's digital transactions.…

Networking and Internet Architecture · Computer Science 2017-04-12 Nicola Bui , Matteo Cesana , S. Amir Hosseini , Qi Liao , Ilaria Malanchini , Joerg Widmer

Maximizing robustness and minimizing cost are common objectives in the design of infrastructure networks. However, most infrastructure networks evolve and operate in a highly decentralized fashion, which may significantly impact the…

Physics and Society · Physics 2008-05-29 Dong-Hee Kim , Adilson E. Motter

This study develops a statistical model that integrates economic agglomeration theory and power-law distributions of city sizes to project future population distribution on 1-km grid cells. We focus on Japan -- a country at the forefront of…

General Economics · Economics 2025-05-14 Tomoya Mori , Daisuke Murakami

Geometrical distance is an important constraining factor underpinning the emergence of social and economic interactions of complex systems. Yet, agent-based studies supported by granular analysis of distances are limited. Here, we develop a…

Physics and Society · Physics 2023-11-28 Eduardo Viegas , Orr Levy , Shlomo Havlin , Hideki Takayasu , Misako Takayasu

Growth rate of the world Growth Domestic Product (GDP) is analysed to determine possible pathways of the future economic growth. The analysis is based on using the latest data of the World Bank and it reveals that the growth rate between…

General Finance · Quantitative Finance 2015-11-03 Ron W Nielsen

We provide an overview of the relationship between financial networks and systemic risk. We present a taxonomy of different types of systemic risk, differentiating between direct externalities between financial organizations (e.g.,…

Risk Management · Quantitative Finance 2020-12-24 Matthew O. Jackson , Agathe Pernoud

National economies rest on networks of millions of customer-supplier relations. Some companies -- in the case of their default -- can trigger significant cascades of shock in the supply-chain network and are thus systemically risky. Up to…

General Economics · Economics 2021-10-13 Tobias Reisch , Georg Heiler , Christian Diem , Stefan Thurner

Pareto's law states that the distribution of personal income obeys a power-law in the high-income range, and has been supported by international observations. Researchers have proposed models over a century since its discovery. However, the…

Disordered Systems and Neural Networks · Physics 2009-11-07 Yoshi Fujiwara , Wataru Souma , Hideaki Aoyama , Taisei Kaizoji , Masanao Aoki

In this paper we develop a theory to describe innovation processes in a network of interacting units. We introduce a stochastic picture that allows for the clarification of the role of fluctuations for the survival of innovations in such a…

Statistical Mechanics · Physics 2007-05-23 Ingrid Hartmann-Sonntag , Andrea Scharnhorst , Werner Ebeling

In this study, we investigate the flow of money among bank accounts possessed by firms in a region by employing an exhaustive list of all the bank transfers in a regional bank in Japan, to clarify how the network of money flow is related to…

General Finance · Quantitative Finance 2020-07-31 Yoshi Fujiwara , Hiroyasu Inoue , Takayuki Yamaguchi , Hideaki Aoyama , Takuma Tanaka

The expected utility hypothesis is a popular concept in economics that is useful for making decisions when the payoff is uncertain. In this paper, we investigate the implications of a fluctuation theorem in the theory of expected utility.…

Statistical Mechanics · Physics 2024-01-17 Gianluca Francica , Luca Dell'Anna

Returning a system to a desired state under a force field involves a thermodynamic cost, i.e., {\it work}. This cost fluctuates for a small-scale system from one experimental realization to another. We introduce a general framework to…

Statistical Mechanics · Physics 2022-12-07 Deepak Gupta , Carlos A. Plata

In this work, we study the dynamical robustness in a system consisting of both active and inactive oscillators. We analytically show that the dynamical robustness of such system is determined by the cross link density between active and…

Adaptation and Self-Organizing Systems · Physics 2017-03-01 Wenwen Huang , Xiyun Zhang , Xin Hu , Zonghua Liu , Shuguang Guan

We study the analysis of all the movements of the population on the basis of their mobility from one node to another, to observe, measure, and predict the impact of traffic according to this mobility. The frequency of congestion on roads…

Physics and Society · Physics 2024-11-14 Henock M. Mboko , Mouhamadou A. M. T. Balde , Babacar M. Ndiaye

Technological innovation is one of the most important variables in the evolution of the textile industry system. As the innovation process changes, so does the degree of technological diffusion and the state of competitive equilibrium in…

General Economics · Economics 2022-04-19 Xiangtai Zuo

In many real growing networks the mean number of connections per vertex increases with time. The Internet, the Word Wide Web, collaboration networks, and many others display this behavior. Such a growth can be called {\em accelerated}. We…

Statistical Mechanics · Physics 2007-05-23 S. N. Dorogovtsev , J. F. F. Mendes

Networks effectively capture interactions among components of complex systems, and have thus become a mainstay in many scientific disciplines. Growing evidence, especially from biology, suggest that networks undergo changes over time, and…

Methodology · Statistics 2020-03-10 Ali Shojaie

This paper investigates two mechanisms of financial contagion that are, firstly, the correlated exposure of banks to the same source of risk, and secondly the direct exposure of banks in the interbank market. It will consider a random…

Computational Finance · Quantitative Finance 2016-03-15 Seyyed Mostafa Mousavi , Robert Mackay , Alistair Tucker
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