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Related papers: Markov models of macrosystems

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The paper provides an overview of the theory and applications of risk-sensitive Markov decision processes. The term 'risk-sensitive' refers here to the use of the Optimized Certainty Equivalent as a means to measure expectation and risk.…

Risk Management · Quantitative Finance 2025-09-23 Nicole Bäuerle , Anna Jaśkiewicz

We develop a new theoretical framework for describing steady-state quantum transport phenomena, based on the general maximum-entropy principle of non-equilibrium statistical mechanics. The general form of the many-body density matrix is…

Mesoscale and Nanoscale Physics · Physics 2007-05-23 P. Bokes , R. W. Godby

Maximum entropy modeling is a flexible and popular framework for formulating statistical models given partial knowledge. In this paper, rather than the traditional method of optimizing over the continuous density directly, we learn a smooth…

Methodology · Statistics 2017-05-01 Gabriel Loaiza-Ganem , Yuanjun Gao , John P. Cunningham

Modeling the purposeful behavior of imperfect agents from a small number of observations is a challenging task. When restricted to the single-agent decision-theoretic setting, inverse optimal control techniques assume that observed behavior…

Computer Science and Game Theory · Computer Science 2015-03-19 Kevin Waugh , Brian D. Ziebart , J. Andrew Bagnell

Modeling the purposeful behavior of imperfect agents from a small number of observations is a challenging task. When restricted to the single-agent decision-theoretic setting, inverse optimal control techniques assume that observed behavior…

Computer Science and Game Theory · Computer Science 2013-08-19 Kevin Waugh , Brian D. Ziebart , J. Andrew Bagnell

The minimum entropy production principle provides an approximative variational characterization of close-to-equilibrium stationary states, both for macroscopic systems and for stochastic models. Analyzing the fluctuations of the empirical…

Mathematical Physics · Physics 2009-11-05 C. Maes , K. Netocny

General equilibrium equations in economics play the same role with many-body Newtonian equations in physics. Accordingly, each solution of the general equilibrium equations can be regarded as a possible microstate of the economic system.…

General Finance · Quantitative Finance 2015-06-18 Yong Tao

We present a general holistic theory for the organization of complex networks, both human-engineered and naturally-evolved. Introducing concepts of value of interactions and satisfaction as generic network performance measures, we show that…

Adaptation and Self-Organizing Systems · Physics 2007-07-13 Venkat Venkatasubramanian , Dimitris N. Politis , Priyan R. Patkar

An overarching action principle, the principle of minimal free action, exists for ergodic Markov chain dynamics. Using this principle and the Detailed Fluctuation Theorem, we construct a dynamic ensemble theory for non-equilibrium steady…

Statistical Mechanics · Physics 2019-03-20 Xiangjun Xing , Mingnan Ding

Will a large economy be stable? Building on Robert May's original argument for large ecosystems, we conjecture that evolutionary and behavioural forces conspire to drive the economy towards marginal stability. We study networks of firms in…

Physics and Society · Physics 2019-09-25 José Moran , Jean-Philippe Bouchaud

The mathematical modeling and the stability analysis of multi-lane traffic in the macroscopic scale is considered. We propose a new first order model derived from microscopic dynamics with lane changing, leading to a coupled system of…

Analysis of PDEs · Mathematics 2023-12-04 Matteo Piu , Michael Herty , Gabriella Puppo

A new model ecosystem consisting of many interacting species is introduced. The species are connected through a random matrix with a given connectivity. It is shown that the system is organized close to a boundary of marginal stability in…

adap-org · Physics 2007-05-23 Ricard V. Sole , David Alonso , Alan McKane

In statistical mechanics, measuring the number of available states and their probabilities, and thus the system's entropy, enables the prediction of the macroscopic properties of a physical system at equilibrium. This predictive capacity…

Statistical Mechanics · Physics 2023-12-14 Mathias Casiulis , Stefano Martiniani

Mathematical methods of population genetics and framework of exchangeability provide a Markov chain model for analysis and interpretation of stochastic behaviour of equity markets, explaining, in particular, market shape formation,…

Mathematical Finance · Quantitative Finance 2015-06-24 Sergey Sosnovskiy

We introduce the notion of metric entropy for a nonautonomous dynamical system given by a sequence of probability spaces and a sequence of measure-preserving maps between these spaces. This notion generalizes the classical concept of metric…

Dynamical Systems · Mathematics 2016-11-26 Christoph Kawan

The concepts of probability, statistics and stochastic theory are being successfully used in structural engineering. Markov Chain modelling is a simple stochastic process model that has found its application in both describing stochastic…

Applications · Statistics 2007-08-14 K. Balaji Rao

The problem of constrained Markov decision process is considered. An agent aims to maximize the expected accumulated discounted reward subject to multiple constraints on its costs (the number of constraints is relatively small). A new dual…

Optimization and Control · Mathematics 2022-10-21 Egor Gladin , Maksim Lavrik-Karmazin , Karina Zainullina , Varvara Rudenko , Alexander Gasnikov , Martin Takáč

Examining the behavior of multi-agent systems is vitally important to many emerging distributed applications - game theory has emerged as a powerful tool set in which to do so. The main approach of game-theoretic techniques is to model…

Computer Science and Game Theory · Computer Science 2024-06-03 Rohit Konda , Rahul Chandan , Jason Marden

Ideas and formalisms from far-from-equilibrium thermodynamics are ported to the context of stochastic computational processes, via following and extending Tadaki's algorithmic thermodynamics. A Principle of Maximum Algorithmic Caliber is…

Artificial Intelligence · Computer Science 2020-05-12 Ben Goertzel

We consider a finite number of $N$ statistically equal agents, each moving on a finite set of states according to a continuous-time Markov Decision Process (MDP). Transition intensities of the agents and generated rewards depend not only on…

Probability · Mathematics 2025-09-23 Nicole Bäuerle , Sebastian Höfer