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Complex systems comprise a large number of interacting elements, whose dynamics is not always a priori known. In these cases -- in order to uncover their key features -- we have to turn to empirical methods, one of which was recently…

Physics and Society · Physics 2008-12-02 Janos Kertesz , Zoltan Eisler

A two-state master equation based decision making model has been shown to generate phase transitions, to be topologically complex and to manifest temporal complexity through an inverse power-law probability distribution function in the…

Adaptation and Self-Organizing Systems · Physics 2015-06-22 Bruce J. West , Malgorzata Turalska , Paolo Grigolini

Models of auctions or tendering processes are introduced. In every round of bidding the players select their bid from a probability distribution and whenever a bid is unsuccessful, it is discarded and replaced. For simple models, the…

Adaptation and Self-Organizing Systems · Physics 2009-11-07 R. D'Hulst , G. J. Rodgers

The goal of developing a firmer theoretical understanding of inhomogenous temporal processes -- in particular, the waiting times in some collective dynamical system -- is attracting significant interest among physicists. Quantifying the…

Statistical Finance · Quantitative Finance 2015-06-12 Guannan Zhao , Mark McDonald , Dan Fenn , Stacy Williams , Neil F. Johnson

Among the existing E-Commerce applications, online auctions are the most influential ones. Their impact on trading in the B2B (business to business) as well as in the B2C (business to consumer) and C2C (consumer to consumer) areas will be…

Software Engineering · Computer Science 2014-09-24 Bernhard Rumpe , Guido Wimmel

Trade prices of about 1000 New York Stock Exchange-listed stocks are studied at one-minute time resolution over the continuous five year period 2018--2022. For each stock, in dollar-volume-weighted transaction time, the discrepancy from a…

Pricing of Securities · Quantitative Finance 2023-05-16 William H. Press

We show that when the standard techniques for calculating fractal dimensions in empirical data (such as the box counting) are applied on uniformly random structures, apparent fractal behavior is observed in a range between physically…

Condensed Matter · Physics 2008-02-03 D. A. Lidar , O. Malcai , O. Biham , D. Avnir

We consider a few quantities that characterize trading on a stock market in a fixed time interval: logarithmic returns, volatility, trading activity (i.e., the number of transactions), and volume traded. We search for the power-law…

Statistical Finance · Quantitative Finance 2016-01-20 Rafal Rak , Stanislaw Drozdz , Jaroslaw Kwapien , Pawel Oswiecimka

Records of the traded value f_i(t) of stocks display fluctuation scaling, a proportionality between the standard deviation sigma(i) and the average <f(i)>: sigma(i) ~ f(i)^alpha, with a strong time scale dependence alpha(dt). The…

Physics and Society · Physics 2008-12-02 Zoltan Eisler , Janos Kertesz

We investigate transitions of portals users between different subpages. A weighted network of portals subpages is reconstructed where edge weights are numbers of corresponding transitions. Distributions of link weights and node strengths…

Physics and Society · Physics 2015-05-13 Anna M. Chmiel , Kamila Kowalska , Janusz A. Holyst

Financial markets can be seen as complex systems in non-equilibrium steady state, one of whose most important properties is the distribution of price fluctuations. Recently, there have been assertions that this distribution is qualitatively…

Physics and Society · Physics 2008-12-02 Raj Kumar Pan , Sitabhra Sinha

The correlation matrix formalism is used to study temporal aspects of the stock market evolution. This formalism allows to decompose the financial dynamics into noise as well as into some coherent repeatable intraday structures. The present…

Soft Condensed Matter · Physics 2009-11-07 J. Kwapien , S. Drozdz , F. Gruemmer , F. Ruf , J. Speth

Power spectrum densities for the number of tick quotes per minute (market activity) on three currency markets (USD/JPY, EUR/USD, and JPY/EUR) for periods from January 1999 to December 2000 are analyzed. We find some peaks on the power…

Data Analysis, Statistics and Probability · Physics 2009-11-11 Aki-Hiro Sato

Fluctuation scaling has been observed universally in a wide variety of phenomena. In time series that describe sequences of events, fluctuation scaling is expressed as power function relationships between the mean and variance of either…

Data Analysis, Statistics and Probability · Physics 2015-11-03 Shinsuke Koyama , Ryota Kobayashi

We consider a market where many agents trade many different types of products with each other. We model development of collective modes in this market, and quantify these by fluctuations that scale with time with a Hurst exponent of about…

Condensed Matter · Physics 2009-10-31 Raul Donangelo , Alex Hansen , Kim Sneppen , Sergio R. Souza

Motivated by the literature on investment flows and optimal trading, we examine intraday predictability in the cross-section of stock returns. We find a striking pattern of return continuation at half-hour intervals that are exact multiples…

Trading and Market Microstructure · Quantitative Finance 2010-05-20 Steven L. Heston , Robert A. Korajczyk , Ronnie Sadka

We study the scaling of fluctuations with the mean of traffic in complex networks using a model where the arrival and departure of "packets" follow exponential distributions, and the processing capability of nodes is either unlimited or…

Physics and Society · Physics 2009-11-11 Jordi Duch , Alex Arenas

Dynamical systems in nature such as fluid flows, heart beat patterns, rainfall variability, stock market price fluctuations, etc. exhibit selfsimilar fractal fluctuations on all scales in space and time. Power spectral analyses of fractal…

General Physics · Physics 2007-05-23 A. M. Selvam

We perform a simplified Ethernet traffic simulation in order to clarify the physical mechanism of the phase transition behavior which has been experimentally observed in the flow density fluctuation of Internet traffic. In one phase…

Statistical Mechanics · Physics 2009-10-31 Kensuke Fukuda , Hideki Takayasu , Misako Takayasu

The volatility characterizes the amplitude of price return fluctuations. It is a central magnitude in finance closely related to the risk of holding a certain asset. Despite its popularity on trading floors, the volatility is unobservable…

Physics and Society · Physics 2008-12-02 Zoltan Eisler , Josep Perello , Jaume Masoliver