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Several problems arising in Economics and Finance are analyzed using concepts and quantitative methods from Physics. Here is the abridged abstact: Chapter 1: By analogy with energy, the equilibrium probability distribution of money must…

Statistical Mechanics · Physics 2008-12-10 Adrian A. Dragulescu

Kinetics of systems specified by anharmonic, nonconservative and nonlocally coupled model Hamiltonians is reproduced in the Fokker-Planck and imaginary time Schrodinger equation techniques with subsequent symplectic integration. Test…

Materials Science · Physics 2007-05-23 E. Klotins

Half-space problems in the kinetic theory of gases are of great importance in the study of the asymptotic behavior of solutions of boundary value problems for the Boltzmann equation for small Knudsen numbers. In this work a generally…

Analysis of PDEs · Mathematics 2024-01-09 Niclas Bernhoff

In this work, we study the formal connections between the non-linear Fokker-Planck Equation associated with the non-additive entropy and the Boltzmann Equation with the non-additive correlation functional. The collisional term following the…

Statistical Mechanics · Physics 2023-02-23 Airton Deppman , Alireza K. Golmankhaneh , Eugenio Megias , Roman Pasechnik

A new type of kinetic models with non-instantaneous binary collisions is considered. Collisions are described by a transport process in the joint state space of a pair of particles. The interactions are of alignment type, where the states…

Analysis of PDEs · Mathematics 2023-05-22 Laura Kanzler , Christian Schmeiser , Veronica Tora

The Boltzmann and Gibbs approaches to statistical mechanics have very different definitions of equilibrium and entropy. The problems associated with this are discussed and it is suggested that they can be resolved, to produce a version of…

Statistical Mechanics · Physics 2007-10-11 David A. Lavis

We propose a method to infer lead-lag networks of traders from the observation of their trade record as well as to reconstruct their state of supply and demand when they do not trade. The method relies on the Kinetic Ising model to describe…

Trading and Market Microstructure · Quantitative Finance 2022-04-20 Carlo Campajola , Fabrizio Lillo , Daniele Tantari

The framework of Mean-field Games (MFGs) is used for modelling the collective dynamics of large populations of non-cooperative decision-making agents. We formulate and analyze a kinetic MFG model for an interacting system of non-cooperative…

Optimization and Control · Mathematics 2024-07-29 Piyush Grover , Mandy Huo

A dynamic herding model with interactions of trading volumes is introduced. At time $t$, an agent trades with a probability, which depends on the ratio of the total trading volume at time $t-1$ to its own trading volume at its last trade.…

Trading and Market Microstructure · Quantitative Finance 2009-11-03 F. Ren , B. Zheng , P. Chen

We introduce a model of long-range interacting particles evolving under a stochastic Monte Carlo dynamics, in which possible increase or decrease in the values of the dynamical variables is accepted with preassigned probabilities. For…

Statistical Mechanics · Physics 2013-12-03 Shamik Gupta , Thierry Dauxois , Stefano Ruffo

The game dynamical equations are derived from Boltzmann-like equations for individual pair interactions by assuming a certain kind of imitation behavior, the so-called proportional imitation rule. They can be extended to a stochastic…

Statistical Mechanics · Physics 2007-05-23 Dirk Helbing

We present a new approach to analyze homogeneous nucleation based on non-equilibrium thermodynamics. The starting point is the formulation of a Gibbs equation for the variations of the entropy of the system, whose state is characterized by…

Condensed Matter · Physics 2007-05-23 D. Reguera Lopez , J. M. Rubi , A. Perez-Madrid

The standard Fermi-Hubbard chain becomes non-integrable by adding to the nearest neighbor hopping additional longer range hopping amplitudes. We assume that the quartic interaction is weak and investigate numerically the dynamics of the…

Mathematical Physics · Physics 2013-07-23 Martin L. R. Fürst , Christian B. Mendl , Herbert Spohn

We study the Boltzmann transport equation for the Bose-Hubbard chain in the kinetic regime. The time-dependent Wigner function is matrix-valued with odd dimension due to integer spin. For nearest neighbor hopping only, there are infinitely…

Mathematical Physics · Physics 2014-06-12 Martin L. R. Fürst , Christian B. Mendl , Herbert Spohn

Under low-collisionality conditions the isotropic part of the electron velocity distribution function in a plasma becomes non-local and the electrons can be described by a single global distribution function . This is also the regime…

Plasma Physics · Physics 2019-09-24 Uwe Czarnetzki

The basic purpose of this work was to suggest universal quantitative description of ergodic system intermediate bifurcation and obligatory conditions of this transition. Conditions for existence of phase state and first order phase…

Chaotic Dynamics · Physics 2014-07-01 Sergey Kamenshchikov

We consider the herding to non-herding transition caused by idiosyncratic choices or imperfect imitation in the context of the Kirman Model for financial markets, or equivalently the Noisy Voter Model for opinion formation. In these…

Physics and Society · Physics 2019-09-19 Oriol Artime , Adrián Carro , Antonio F. Peralta , José J. Ramasco , Maxi San Miguel , Raúl Toral

We introduce and discuss spatially homogeneous Maxwell-type models of the nonlinear Boltzmann equation undergoing binary collisions with a random component. The random contribution to collisions is such that the usual collisional invariants…

Analysis of PDEs · Mathematics 2008-01-18 José Antonio Carrillo , Stéphane Cordier , Giuseppe Toscani

Random exchange kinetic models are widely employed to describe the conservative dynamics of large interacting systems. Due to their simplicity and generality, they are quite popular in several fields, from statistical mechanics to…

Statistical Mechanics · Physics 2025-05-01 Dario Lucente , Marco Baldovin , Andrea Puglisi , Angelo Vulpiani

In this paper we study the asymptotic behavior of a Boltzmann type price formation model, which describes the trading dynamics in a financial market. In many of these markets trading happens at high frequencies and low transactions costs.…

Analysis of PDEs · Mathematics 2013-12-05 Martin Burger , Luis Caffarelli , Peter A. Markowich , Marie-Therese Wolfram
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