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Current business cycle theory is an application of the general equilibrium theory. This paper presents the business cycle model without using general equilibrium framework. We treat agents risk assessments as their coordinates x on economic…

Economics · Quantitative Finance 2018-04-16 Victor Olkhov

This paper introduces an agent-based artificial financial market in which heterogeneous agents trade one single asset through a realistic trading mechanism for price formation. Agents are initially endowed with a finite amount of cash and a…

Statistical Mechanics · Physics 2009-11-07 Marco Raberto , Silvano Cincotti , Sergio M. Focardi , Michele Marchesi

Thanks to the access to labeled orders on the Cac40 index future provided by Euronext, we are able to quantify market participants contributions to the volatility in the diffusive limit. To achieve this result we leverage the branching…

Trading and Market Microstructure · Quantitative Finance 2018-07-19 Marcello Rambaldi , Emmanuel Bacry , Jean-François Muzy

We present a detailed study of the statistical properties of an Agent Based Model and of its generalization to the multiplicative dynamics. The aim of the model is to consider the minimal elements for the understanding of the origin of the…

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

The average economic agent is often used to model the dynamics of simple markets, based on the assumption that the dynamics of many agents can be averaged over in time and space. A popular idea that is based on this seemingly intuitive…

Trading and Market Microstructure · Quantitative Finance 2015-07-29 Sebastian M. Krause , Stefan Boerries , Stefan Bornholdt

Individual choices are either based on personal experience or on information provided by peers. The latter case, causes individuals to conform to the majority in their neighborhood. Such herding behavior may be very efficient in aggregating…

Physics and Society · Physics 2009-11-11 Philippe Curty , Matteo Marsili

We study social behaviour of agents on capital markets when these are perturbed by small perturbations. We use the mean field method. Social behaviour of agents on capital markets is described: volatility of the market, aversion constant…

Physics and Society · Physics 2021-08-19 Ondrej Hudak , Jana Tothova

We discuss recent work in the study of a simple model for the collective behaviour of diverse speculative agents in an idealized stockmarket, considered from the perspective of the statistical physics of many-body systems. The only…

Disordered Systems and Neural Networks · Physics 2007-05-23 J. P. Garrahan , E. Moro , D. Sherrington

Models for cross-sectional network data have become increasingly well-developed in recent decades, and are widely used. This has led to a growing interest in the connection between such cross-sectional models and the behavioral processes…

Social and Information Networks · Computer Science 2026-05-05 Carter T. Butts , Alexander Murray-Watters

We present an agent-based model of microscopic wealth exchange in a dynamic network to study the topological features associated with economic inequality. The model evolves through two alternating processes, the conservative exchange of…

Physics and Society · Physics 2024-08-30 Gustavo Kohlrausch , Sebastián Gonçalves

An agent-based computational economical toy model for the emergence of money from the initial barter trading, inspired by Menger's postulate that money can spontaneously emerge in a commodity exchange economy, is extensively studied. The…

Statistical Finance · Quantitative Finance 2015-12-09 Paweł Oświęcimka , Stanisław Drożdż , Robert Gębarowski , Andrzej Z. Górski , Jarosław Kwapień

This study examines anomalous diffusion and dynamical phase transitions in a nonlinear bouncer model with short-range interactions leading to velocity-dependent (adiabatic) collisions. By varying a control parameter, transitions between…

Chaotic Dynamics · Physics 2025-06-17 Luiz Antonio Barreiro

This paper proposes an agent-based model that combines both spot and balancing electricity markets. From this model, we develop a multi-agent simulation to study the integration of the consumers' flexibility into the system. Our study…

Systems and Control · Computer Science 2018-02-13 Florian Kühnlenz , Pedro H. J. Nardelli , Santtu Karhinen , Rauli Svento

Positive feedback trading, which buys when prices rise and sells when prices fall, has long been criticized for being destabilizing as it moves prices away from the fundamentals. Motivated by the relationship between positive feedback…

Mathematical Finance · Quantitative Finance 2021-11-25 Aihua Li

We study a dynamical Ising model of agents' opinions (buy or sell) with coupling coefficients reassessed continuously in time according to how past external news (magnetic field) have explained realized market returns. By combining herding,…

Physics and Society · Physics 2008-12-02 Wei-Xing Zhou , Didier Sornette

This paper investigates the interplay between information diffusion in social networks and its impact on financial markets with an Agent-Based Model (ABM). Agents receive and exchange information about an observable stochastic component of…

General Economics · Economics 2024-12-24 Tommaso Di Francesco , Daniel Torren Peraire

An important component in studying mathematical models in many biochemical systems, such as those found in developmental biology, is phase transition. The purpose of this work is to analyze the phase transition property of a…

Analysis of PDEs · Mathematics 2013-12-19 Masoud Yari

We introduce a stochastic agent-based model for the flocking dynamics of self-propelled particles that exhibit velocity-alignment interactions with neighbours within their field of view. The stochasticity in the dynamics of the model arises…

Statistical Mechanics · Physics 2019-07-24 Trilochan Bagarti , Shakti N. Menon

The dynamics of many socioeconomic systems is determined by the decision making process of agents. The decision process depends on agent's characteristics, such as preferences, risk aversion, behavioral biases, etc.. In addition, in some…

Statistical Finance · Quantitative Finance 2009-11-13 Gabriella Vaglica , Fabrizio Lillo , Esteban Moro , Rosario N. Mantegna

In a multiagent network model consisting of nodes, each network node has an agent and priced Friddy coins, and the agent can buy or sell Friddy coins in the marketplace. Though every node may not effectively have an equal price during the…

Artificial Intelligence · Computer Science 2021-08-13 Abdelrahman Elsharawy