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An introduction to cellular automata (both deterministic and probabilistic) with examples. Definition of deterministic automata, dynamical properties, damage spreading and Lyapunov exponents; probabilistic automata and Markov processes,…

Statistical Mechanics · Physics 2007-05-23 Franco Bagnoli

A theoretical model is presented which provides a way to simulate, at a very abstract level, power struggles in the social world. In the model, agents can benefit or harm each other, to varying degrees and with differing levels of…

Social and Information Networks · Computer Science 2016-12-15 Michael Poulshock

The spin market model [S. Bornholdt, Int.J.Mod.Phys. C 12 (2001) 667] is extended into co-evolutionary version, where strategies of interacting and competitive traders are represented by local and global couplings between the nodes of…

Adaptation and Self-Organizing Systems · Physics 2009-11-11 D. Horvath , Z. Kuscsik , M. Gmitra

We study stochastic pairwise interaction network systems whereby a finite population of agents, identified with the nodes of a graph, update their states in response to both individual mutations and pairwise interactions with their…

Systems and Control · Electrical Eng. & Systems 2024-10-31 Giacomo Como , Fabio Fagnani , Sandro Zampieri

We propose a Statistical-Mechanics inspired framework for modeling economic systems. Each agent composing the economic system is characterized by a few variables of distinct nature (e.g. saving ratio, expectations, etc.). The agents…

Statistical Mechanics · Physics 2007-05-23 Tom Erez , Martin Hohnisch , Sorin Solomon

We extend the well-known Cont-Bouchaud model to include a hierarchical topology of agent's interactions. The influence of hierarchy on system dynamics is investigated by two models. The first one is based on a multi-level, nested…

Physics and Society · Physics 2023-07-19 Robert Paluch , Krzysztof Suchecki , Janusz A. Holyst

In light of the growing interest in agent-based market models, we bring together several earlier works in which we considered the topic of self-consistent market modelling. Building upon the binary game structure of Challet and Zhang, we…

Disordered Systems and Neural Networks · Physics 2008-12-02 Paul Jefferies , Neil F. Johnson

We use trace class scattering theory to exclude the possibility of absolutely continuous spectrum in a large class of self-adjoint operators with an underlying hierarchical structure and provide applications to certain random hierarchical…

Mathematical Physics · Physics 2019-01-23 Per von Soosten , Simone Warzel

We consider a financial market model which consists of a financial asset and a large number of interacting agents classified into many types. Different types of agents are heterogeneous in their price expectations. Each agent can change its…

Probability · Mathematics 2008-12-02 Biao Wu

In complex systems, many different parts interact in non-obvious ways. Traditional research focuses on a few or a single aspect of the problem so as to analyze it with the tools available. To get a better insight of phenomena that emerge…

Multiagent Systems · Computer Science 2015-04-03 Klaus Jaffe

We introduce a minimal Agent Based Model for financial markets to understand the nature and Self-Organization of the Stylized Facts. The model is minimal in the sense that we try to identify the essential ingredients to reproduce the main…

Trading and Market Microstructure · Quantitative Finance 2009-11-13 V. Alfi , M. Cristelli , L. Pietronero , A. Zaccaria

We discuss the feasibility of predicting, managing and subsequently manipulating, the future evolution of a Complex Adaptive System. Our archetypal system mimics a population of adaptive, interacting objects, such as those arising in the…

Physics and Society · Physics 2007-05-23 David M. D. Smith , Neil F. Johnson

Macroscopic price evolution models are commonly used for investment strategies. There are first promising achievements in defining microscopic agent based models for the same purpose. Microscopic models allow a deeper understanding of…

Pricing of Securities · Quantitative Finance 2011-03-29 Sebastian M. Krause , Stefan Bornholdt

We propose a model for the dynamics of a social system, which includes diffusive effects and a biased rule for spin-flips, reproducing the effect of strategic choices. This model is able to mimic some phenomena taking place during marketing…

Physics and Society · Physics 2010-03-11 Elena Agliari , Raffaella Burioni , Pierluigi Contucci

We propose a simple model that describes the dynamics of efficiencies of competing agents. Agents communicate leading to increase of efficiencies of underachievers, and an efficiency of each agent can increase or decrease irrespectively of…

Statistical Mechanics · Physics 2009-10-31 S. N. Majumdar , P. L. Krapivsky

Market-based coordination of demand side assets has gained great interests in recent years. In spite of its efficiency, there is a risk that the interaction between the dynamic assets through the price signal could result in an unstable…

Optimization and Control · Mathematics 2017-04-04 Lin Zhao , Wei Zhang

This paper presents an analytical treatment of economic systems with an arbitrary number of agents that keeps track of the systems' interactions and agents' complexity. This formalism does not seek to aggregate agents. It rather replaces…

General Economics · Economics 2018-10-18 Aïleen Lotz , Pierre Gosselin , Marc Wambst

We present a family of one-dimensional cellular automata modeling the diffusion of an innovation in a population. Starting from simple deterministic rules, we construct models parameterized by the interaction range and exhibiting a…

adap-org · Physics 2023-12-18 Nino Boccara , Henryk Fuks

We study time continuous branching processes with exponentially distributed lifetimes, with two types of cells that proliferate according to binary fission. A range of possible system dynamics are considered, each of which is characterized…

Probability · Mathematics 2022-04-27 Nam H Nguyen , Marek Kimmel

We consider the dynamics and the interactions of multiple reinforcement learning optimal execution trading agents interacting with a reactive Agent-Based Model (ABM) of a financial market in event time. The model represents a market ecology…

Trading and Market Microstructure · Quantitative Finance 2024-08-15 Matthew Dicks , Andrew Paskaramoorthy , Tim Gebbie
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