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Hierarchical analysis is considered and a multilevel model is presented in order to explore causality, chance and complexity in financial economics. A coupled system of models is used to describe multilevel interactions, consistent with…

General Finance · Quantitative Finance 2020-02-04 Diane Wilcox , Tim Gebbie

This paper suggests that business cycles may be a manifestation of coupled real economy and stock market dynamics and describes a mechanism that can generate economic fluctuations consistent with observed business cycles. To this end, we…

General Finance · Quantitative Finance 2019-09-27 Dimitri Kroujiline , Maxim Gusev , Dmitry Ushanov , Sergey V. Sharov , Boris Govorkov

This paper presents a hierarchical decision-making framework for autonomous systems operating under uncertainty, demonstrated through autonomous driving as a representative application. Surrounding agents are modeled using Hybrid Markov…

Systems and Control · Electrical Eng. & Systems 2026-03-19 Siyuan Li , Chengyuan Liu , Wen-Hua Chen

The dynamics of a stock market with heterogeneous agents is discussed in the framework of a recently proposed spin model for the emergence of bubbles and crashes. We relate the log returns of stock prices to magnetization in the model and…

Statistical Mechanics · Physics 2009-11-07 Taisei Kaizoji , Stefan Bornholdt , Yoshi Fujiwara

In this paper, we mathematically formulate the interaction and dynamics of a hierarchical complex social system where each agent is seen as an array of many variables. The formation of identities and modifications can be studied by using…

Physics and Society · Physics 2009-12-23 Fariel Shafee

We combine geometric data analysis and stochastic modeling to describe the collective dynamics of complex systems. As an example we apply this approach to financial data and focus on the non-stationarity of the market correlation structure.…

Statistical Finance · Quantitative Finance 2015-09-30 Yuriy Stepanov , Philip Rinn , Thomas Guhr , Joachim Peinke , Rudi Schäfer

In this work we compare social clusters with spin clusters and compare different properties. We also try to compare phase changes in market and labor stratification with phase changes of spin clusters. Then we compare the requisites for…

Disordered Systems and Neural Networks · Physics 2007-05-23 Fariel Shafee

In this dissertation two simple models of stock exchange are developed and simulated numerically. The first is characterized by centralized trading with a market maker. Unfortunately, this model is unable to generate realistic market…

Statistical Mechanics · Physics 2008-12-02 Hendrik J. Blok

A transition from asymmetric to symmetric patterns in time-dependent extended systems is described. It is found that one dimensional cellular automata, started from fully random initial conditions, can be forced to evolve into complex…

Cellular Automata and Lattice Gases · Physics 2007-05-23 J. R. Sanchez , R. Lopez-Ruiz

Recently, a novel model to describe ordering in systems comprising agents which, although matching in their binarity (i.e., maintaining the iconic Ising features of ``+'' or ``-'', ``up'' or ``down'', ``yes'' or ``no''), still differing in…

Statistical Mechanics · Physics 2024-09-25 M. Krasnytska

We introduce and study a non-equilibrium continuous-time dynamical model of the price of a single asset traded by a population of heterogeneous interacting agents in the presence of uncertainty and regulatory constraints. The model takes…

Adaptation and Self-Organizing Systems · Physics 2009-04-23 V. I. Yukalov , D. Sornette , E. P. Yukalova

Many tasks in human environments require performing a sequence of navigation and manipulation steps involving objects. In unstructured human environments, the location and configuration of the objects involved often change in unpredictable…

Robotics · Computer Science 2015-04-14 Jaeyong Sung , Bart Selman , Ashutosh Saxena

Network data often arises via a series of structured interactions among a population of constituent elements. E-mail exchanges, for example, have a single sender followed by potentially multiple receivers. Scientific articles, on the other…

Methodology · Statistics 2019-01-30 Walter Dempsey , Brandon Oselio , Alfred Hero

Simulation serves as a third way of doing science, in contrast to both induction and deduction. The web based modeling may considerably facilitate the execution of simulations by other people. We present examples of agent-based and…

Physics and Society · Physics 2011-04-15 V. Daniunas , V. Gontis , A. Kononovicius

We present a simple model of communication in networks with hierarchical branching. We analyze the behavior of the model from the viewpoint of critical systems under different situations. For certain values of the parameters, a continuous…

Statistical Mechanics · Physics 2009-10-31 A. Arenas , A. Diaz-Guilera , R. Guimera

A discrete time stochastic model for a multiagent system given in terms of a large collection of interacting Markov chains is studied. The evolution of the interacting particles is described through a time inhomogeneous transition…

Probability · Mathematics 2011-06-17 Amarjit Budhiraja , Pierre Del Moral , Sylvain Rubenthaler

We analyze the dynamics of agent--based models (ABMs) from a Markovian perspective and derive explicit statements about the possibility of linking a microscopic agent model to the dynamical processes of macroscopic observables that are…

Adaptation and Self-Organizing Systems · Physics 2012-07-11 Sven Banisch , Ricardo Lima , Tanya Araújo

A generalized continuous economic model is proposed for random markets. In this model, agents interact by pairs and exchange their money in a random way. A parameter controls the effectiveness of the transactions between the agents. We show…

General Finance · Quantitative Finance 2011-05-11 R. Lopez-Ruiz , E. Shivanian , S. Abbasbandy , J. L. Lopez

Emergence and emergent behaviors are often defined as cases where changes in local interactions between agents at a lower level effectively changes what occurs in the higher level of the system (i.e., the whole swarm) and its properties.…

Robotics · Computer Science 2024-04-01 Ricardo Vega , Connor Mattson , Daniel S. Brown , Cameron Nowzari

The objective of this paper is the study of the equilibrium behavior of a population on the hierarchical group $\Omega_N$ consisting of families of individuals undergoing critical branching random walk and in addition these families also…

Probability · Mathematics 2007-05-23 D. A. Dawson , L. G. Gorostiza , A. Wakolbinger
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