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We analyze the stability properties of equilibrium solutions and periodicity of orbits in a two-dimensional dynamical system whose orbits mimic the evolution of the price of an asset and the excess demand for that asset. The construction of…

Dynamical Systems · Mathematics 2009-09-29 Vladimir Belitsky , Antonio L. Pereira , Fernando P. de Almeida Prado

We propose a generalized diffusion equation for a flat Euclidean space subjected to a continuous infinitesimal scale transform. For the special cases of an algebraic or exponential expansion/contraction, governed by time-dependent scale…

Statistical Mechanics · Physics 2018-04-17 Manuel Schrauth , Maximilian Schneider

In a multi-channel marketing world, the purchase decision journey encounters many interactions (e.g., email, mobile notifications, display advertising, social media, and so on). These impressions have direct (main effects), as well as…

Applications · Statistics 2022-06-01 Ritwik Sinha , David Arbour , Aahlad Manas Puli

We show how highly-diverse ecological communities may display persistent abundance fluctuations, when interacting through resource competition and subjected to migration from a species pool. This turns out to be closely related to the ratio…

Statistical Mechanics · Physics 2020-02-12 Itay Dalmedigos , Guy Bunin

We describe a simple model for speculative trading based on adaptive behavior of economic agents.The adaptive behavior is expressed through a feedback mechanism for changing agents' stock-to-bond ratios, depending on the past performance of…

Trading and Market Microstructure · Quantitative Finance 2018-09-26 Misha Perepelitsa

The central goal of a dynamical theory of evolution is to abstract the mean evolutionary trajectory in the trait space by considering ecological processes at the level of the individual. In this work, we develop such a theory for a new…

Populations and Evolution · Quantitative Biology 2020-03-25 Vaibhav Madhok

In this paper, we examine the long-time dynamics of an epidemic model whose diffusion and reaction terms involve nonlocal effects described by suitable convolution operators.The spreading front of the disease is represented by the free…

Analysis of PDEs · Mathematics 2022-03-01 Rong Wang , Yihong Du

This paper involves a diffusive epidemic model whose domain has one free boundary with the Stefan boundary condition, and one fixed boundary subject to the usual homogeneous Dirichlet or Neumann condition. By using the standard upper and…

Analysis of PDEs · Mathematics 2024-05-03 Xueping Li , Lei Li , Ying Xu , DanDan Zhu

International trade fluxes evolve as countries revise their portfolios of trade products towards economic development. Accordingly products' shares in international trade vary with time, reflecting the transfer of capital between distinct…

Trading and Market Microstructure · Quantitative Finance 2018-01-16 Matthieu Barbier , D. -S. Lee

We characterize the different morphological phases that occur in a simple one-dimensional model of propagation of innovations among economic agents [X.\ Guardiola, {\it et. al.}, Phys. Rev E {\bf 66}, 026121 (2002)]. We show that the model…

Statistical Mechanics · Physics 2009-11-10 M. Llas , P. M. Gleiser , J. M. Lopez , A. Diaz-Guilera

Lifetime distributions of social entities, such as enterprises, products, and media contents, are one of the fundamental statistics characterizing the social dynamics. To investigate the lifetime distribution of mutually interacting…

Physics and Society · Physics 2015-08-20 Yohsuke Murase , Takashi Shimada , Nobuyasu Ito , Per Arne Rikvold

In speculative markets, risk-free profit opportunities are eliminated by traders exploiting them. Markets are therefore often described as "informationally efficient", rapidly removing predictable price changes, and leaving only residual…

Trading and Market Microstructure · Quantitative Finance 2013-10-08 Felix Patzelt , Klaus R. Pawelzik

A dynamical model is introduced for the formation of a bullish or bearish trends driving an asset price in a given market. Initially, each agent decides to buy or sell according to its personal opinion, which results from the combination of…

Physics and Society · Physics 2011-06-09 Serge Galam

In this article we revisit the classic problem of tatonnement in price formation from a microstructure point of view, reviewing a recent body of theoretical and empirical work explaining how fluctuations in supply and demand are slowly…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Jean-Philippe Bouchaud , J. Doyne Farmer , Fabrizio Lillo

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

We consider a class of biologically-motivated stochastic processes in which a unicellular organism divides its resources (volume or damaged proteins, in particular) symmetrically or asymmetrically between its progeny. Assuming the final…

Quantitative Methods · Quantitative Biology 2016-07-20 Andrew Marantan , Ariel Amir

We develop from basic economic principles a continuous-time model for a large investor who trades with a finite number of market makers at their utility indifference prices. In this model, the market makers compete with their quotes for the…

Trading and Market Microstructure · Quantitative Finance 2015-09-10 Peter Bank , Dmitry Kramkov

This paper studies cost pass-through in differentiated-product oligopoly. I derive a general representation of the pass-through matrix that decomposes equilibrium price responses into the roles of demand curvature, substitution, and…

General Economics · Economics 2026-04-24 Paul S. Koh

Standard models of asset price dynamics, such as geometric Brownian motion (see, for example, Osborne, 1959, Samuelson, 2016), do not formally incorporate investor inertia. This paper presents a two-stage framework for modelling this…

Theoretical Economics · Economics 2025-11-27 Diego da Silva Santos , Luiz Gustavo Bastos Pinho

In this paper we study the evolution of asset price bubbles driven by contagion effects spreading among investors via a random matching mechanism in a discrete-time version of the liquidity based model of [25]. To this scope, we extend the…

Mathematical Finance · Quantitative Finance 2022-11-03 Francesca Biagini , Andrea Mazzon , Thilo Meyer-Brandis , Katharina Oberpriller