Related papers: Non-Equivalent Beliefs and Subjective Equilibrium …
We present a dynamical many-body theory of money in which the value of money is a time dependent ``strategic variable'' that is chosen by the individual agents. The value of money in equilibrium is not fixed by the equations, and thus…
We analyze the critical behavior of a class of discrete opinion models in the presence of disorder. Within this class, each agent opinion takes a discrete value ($\pm 1$ or 0) and its time evolution is ruled by two terms, one representing…
A microeconomic approach is proposed to derive the fluctuations of risky asset price, where the market participants are modeled as prospect trading agents. As asset price is generated by the temporary equilibrium between demand and supply,…
We formulate an equilibrium model of intraday trading in electricity markets. Agents face balancing constraints between their customers consumption plus intraday sales and their production plus intraday purchases. They have continuously…
In this work we study the coupled dynamics of social balance and opinion formation. We propose a model where agents form opinions under bounded confidence, but only considering the opinions of their friends. The signs of social ties…
We study a simple continuous-time multi-agent system related to Krause's model of opinion dynamics: each agent holds a real value, and this value is continuously attracted by every other value differing from it by less than 1, with an…
This paper formulates a model of utility for a continuous time framework that captures the decision-maker's concern with ambiguity about both volatility and drift. Corresponding extensions of some basic results in asset pricing theory are…
We propose a stochastic model of opinion exchange in networks. A finite set of agents is organized in a fixed network structure. There is a binary state of the world and each agent receives a private signal on the state. We model beliefs as…
We recently proposed a model coupling the evolution of the opinions of the individual with the local network topology. The opinion dynamics is based on the Bounded Confidence model. The social networks is based on a group concept where each…
We characterize the collective phenomena of a liquid market. By interpreting the behavior of a no-arbitrage N asset market in terms of a particle system scenario, (thermo)dynamical-like properties can be extracted from the asset kinetics.…
We study a class of heterogeneous agent-based models which are based on a basic set of principles, and the most fundamental operations of an economic system: trade and product transformations. A basic guiding principle is scale invariance,…
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…
We explore a new mechanism to explain polarization phenomena in opinion dynamics in which agents evaluate alternative views on the basis of the social feedback obtained on expressing them. High support of the favored opinion in the social…
Interest in how democracies form consensus has increased recently, with statistical physics and economics approaches both suggesting that there is convergence to a fixed point in belief networks, but with fluctuations in opinions when there…
The original Deffuant model consists of a finite number of agents whose opinion is a number in $[0,1]$. Two socially connected agents are uniformly randomly selected at each time step and approach each other at a rate $\mu\in [0,1/2]$ if…
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…
We define the model of an abstract economy with private information and a countable set of actions. We generalize the H. Yu and Z. Zhang's model (2007), considering that each agent is characterised by a preference correspondence instead of…
Among the several approaches that have been attempted at studying opinion dynamics, the Sznajd model provides some particularly interesting features, such as its simplicity and ability to represent some of the mechanisms believed to be…
We study a simple model of an asset market with informed and non-informed agents. In the absence of non-informed agents, the market becomes information efficient when the number of traders with different private information is large enough.…
We represent preferences that exhibit absolute or relative attitudes towards ambiguity without assuming convexity of preferences. Our analysis is motivated by the recent experimental evidence by Baillon and Placido (2019) indicating that…