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We consider the evolution of scale-free networks according to preferential attachment schemes and show the conditions for which the exponent characterizing the degree distribution is bounded by upper and lower values. Our framework is an…

Statistical Finance · Quantitative Finance 2013-01-07 João P. da Cruz , Pedro G. Lind

We investigate the detailed dynamics of gains and losses made by agents in some kinetic models of wealth exchange. The concept of a walk in an abstract gain-loss space for the agents had been introduced in an earlier work. For models in…

Physics and Society · Physics 2013-05-29 Sanchari Goswami , Arnab Chatterjee , Parongama Sen

We propose a general scenario to analyze social and economic changes in modern environments. We illustrate the ideas with a model that incorporating the main trends is simple enough to extract analytical results and, at the same time,…

Statistical Mechanics · Physics 2009-10-31 A. Arenas , A. Diaz-Guilera , C. J. Perez , F. Vega-Redondo

In simulations of some economic gas-like models, the asymptotic regime shows an exponential wealth distribution, independently of the initial wealth distribution given to the system. The appearance of this statistical equilibrium for this…

General Finance · Quantitative Finance 2011-05-23 Jose-Luis Lopez , Ricardo Lopez-Ruiz , Xavier Calbet

We study the Immediate Exchange model, recently introduced by Heinsalu and Patriarca [Eur. Phys. J. B 87: 170 (2014)], who showed by simulations that the wealth distribution in this model converges to a Gamma distribution with shape…

General Finance · Quantitative Finance 2015-06-23 Guy Katriel

A minimal model of a market of myopic non-cooperative agents who trade bilaterally with random bids reproduces qualitative features of short-term electric power markets, such as those in California and New England. Each agent knows its own…

Trading and Market Microstructure · Quantitative Finance 2009-05-15 Randall A. LaViolette , Lory A. Ellebracht , Kevin L. Stamber , Charles J. Gieseler , Benjamin K. Cook

We report on a series of experiments in which we study the coevolutionary "arms-race" dynamics among groups of agents that engage in adaptive automated trading in an accurate model of contemporary financial markets. At any one time, every…

Computational Engineering, Finance, and Science · Computer Science 2021-09-23 Nik Alexandrov , Dave Cliff , Charlie Figuero

In the context of a large class of stochastic processes used to describe the dynamics of wealth growth, we prove a set of inequalities establishing necessary and sufficient conditions in order to avoid infinite wealth concentration. These…

Theoretical Economics · Economics 2023-03-02 Valerio Astuti

We study a risk-sharing economy where an arbitrary number of heterogenous agents trades an arbitrary number of risky assets subject to quadratic transaction costs. For linear state dynamics, the forward-backward stochastic differential…

General Finance · Quantitative Finance 2020-11-30 Johannes Muhle-Karbe , Xiaofei Shi , Chen Yang

We study a stochastic multiplicative system composed of finite asynchronous elements to describe the wealth evolution in financial markets. We find that the wealth fluctuations or returns of this system can be described by a walk with…

Statistical Mechanics · Physics 2009-11-07 Zhi-Feng Huang , Sorin Solomon

We develop a formalism to study linearized perturbations around the equilibria of a pure exchange economy. With the use of mean field theory techniques, we derive equations for the flow of products in an economy driven by heterogeneous…

Trading and Market Microstructure · Quantitative Finance 2015-05-13 Samuel E. Vazquez , Simone Severini

Cooperation between individuals is emergent in all parts of society, yet mechanistic reasons for this emergence is ill understood in the literature. A specific example of this is insurance. Recent work has, though, shown that assuming the…

Physics and Society · Physics 2024-03-20 Tobias Wand , Oliver Kamps , Benjamin Skjold

We define and study a rather complex market model, inspired from the Santa Fe artificial market and the Minority Game. Agents have different strategies among which they can choose, according to their relative profitability, with the…

Condensed Matter · Physics 2009-11-07 Irene Giardina , Jean-Philippe Bouchaud

This paper attempts to find a relationship between agents' risk aversion and inequality of incomes. Specifically, a model is proposed for the evolution in time of surplus/deficit distribution, and the long-time distributions are…

Economics · Quantitative Finance 2016-05-12 Eleonora Perversi , Eugenio Regazzini

We develop a general framework, based on Boltzmann transport theory, to analyze the distribution of wealth in societies. Within this framework we derive the distribution function of wealth by using a two-party trading model for the poor…

Statistical Mechanics · Physics 2016-08-31 Arnab Das , Sudhakar Yarlagadda

The lattice gas automaton (LGA) is proposed for a closed economic market of agents with heterogeneous saving interests. There are two procedures in the standard LGA, i.e., "propagation" + "transaction". If the propagation step is removed…

Physics and Society · Physics 2022-12-29 Lijie Cui , Chuandong Lin

We address the problem of how cooperative (altruistic-like) behavior arises in natural and social systems by analyzing an ultimatum game in complex networks. Specifically, three types of players are considered: (a) empathetic, whose…

Physics and Society · Physics 2009-12-18 Roberta Sinatra , Jaime Iranzo , Jesús Gómez-Gardeñes , Luis M. Floría , Vito Latora , Yamir Moreno

A microscopic agent dynamical model for diploid age-structured populations is used to study evolution of polymorphism and sympatric speciation. The underlying ecology is represented by a unimodal distribution of resources of some width.…

Populations and Evolution · Quantitative Biology 2015-06-26 E. Brigatti , J. S. Sa' Martins , I. Roditi

Phenomena which involves collective choice of many agents who are interacting with each other and choosing one of several alternatives, based on the limited information available to them, frequently show switching between two distinct…

Physics and Society · Physics 2007-05-23 Sitabhra Sinha , S. Raghavendra

We study here the Bak and Sneppen model, a prototype model for the study of Self-Organized Criticality. In this model several species interact and undergo extinction with a power law distribution of activity bursts. Species are defined…

Statistical Mechanics · Physics 2007-05-23 G. Caldarelli , M. Felici , A. Gabrielli , L. Pietronero
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