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We explore various extensions of Challet and Zhang's Minority Game in an attempt to gain insight into the dynamics underlying financial markets. First we consider a heterogeneous population where individual traders employ differing `time…

Condensed Matter · Physics 2007-05-23 Neil F. Johnson , Michael Hart , Pak Ming Hui , Dafang Zheng

The phenomenon of emergence of swarm intelligence exists widely in nature and human society. People have been exploring the root cause of emergence of swarm intelligence and trying to establish general theories and models for emergence of…

Neural and Evolutionary Computing · Computer Science 2025-03-26 Wenpin Jiao

I present an overview of some recent advancements on the empirical analysis and theoretical modeling of the process of price formation in financial markets as the result of the arrival of orders in a limit order book exchange. After…

Trading and Market Microstructure · Quantitative Finance 2021-05-04 Fabrizio Lillo

We consider hundreds of thousands of individual economic transactions to ask: how predictable are consumers in their merchant visitation patterns? Our results suggest that, in the long-run, much of our seemingly elective activity is…

Physics and Society · Physics 2013-05-07 Coco Krumme , Alejandro Llorente , Manuel Cebrián , Alex , Pentland , Esteban Moro

Order can spontaneously emerge from seemingly noisy interactions between biological agents, like a flock of birds changing their direction of flight in unison, without a leader or an external cue. We are interested in the generic conditions…

Biological Physics · Physics 2021-03-09 Carsten T. van de Kamp , George Dadunashvili , Johan L. A. Dubbeldam , Timon Idema

We consider a general swarm model of self-propelling agents interacting through a pairwise potential in the presence of noise and communication time delay. Previous work [Phys. Rev. E 77, 035203(R) (2008)] has shown that a communication…

Adaptation and Self-Organizing Systems · Physics 2012-05-02 Luis Mier-y-Teran-Romero , Eric Forgoston , Ira B. Schwartz

We propose a simple stochastic model of market behavior. Dividing market participants into two groups: trend-followers and fundamentalists, we derive the general form of a stochastic equation of market dynamics. The model has two…

Statistical Mechanics · Physics 2008-12-02 Guennadi Saiko

It is known from both theory and experiments that introducing time delays into the communication network of mobile-agent swarms produces coherent rotational patterns. Often such spatio-temporal rotations can be bistable with other swarming…

Adaptation and Self-Organizing Systems · Physics 2020-04-15 Jason Hindes , Victoria Edwards , Sayomi Kamimoto , Ioana Triandaf , Ira B. Schwartz

Collective migration of cells and animals often relies on a specialised set of "leaders", whose role is to steer a population of naive followers towards some target. We formulate a continuous model to understand the dynamics and structure…

Populations and Evolution · Quantitative Biology 2021-02-10 Sara Bernardi , Raluca Eftimie , Kevin J. Painter

We investigate the effect of turning delays on the behaviour of groups of differential wheeled robots and show that the group-level behaviour can be described by a transport equation with a suitably incorporated delay. The results of our…

Robotics · Computer Science 2014-10-02 Jake P. Taylor-King , Benjamin Franz , Christian A. Yates , Radek Erban

One approach to the analysis of stochastic fluctuations in market prices is to model characteristics of investor behaviour and the complex interactions between market participants, with the aim of extracting consequences in the aggregate.…

Probability · Mathematics 2008-12-02 Erhan Bayraktar , Ulrich Horst , Ronnie Sircar

Social interaction increases significantly the performance of a wide range of cooperative systems. However, evidence that natural swarms limit the number of social connections suggests potentially detrimental consequences of excessive…

Adaptation and Self-Organizing Systems · Physics 2016-09-09 David Mateo , Yoke Kong Kuan , Roland Bouffanais

Strategy evaluation schemes are a crucial factor in any agent-based market model, as they determine the agents' strategy preferences and consequently their behavioral pattern. This study investigates how the strategy evaluation schemes…

Portfolio Management · Quantitative Finance 2010-08-24 Yongjoo Baek , Sang Hoon Lee , Hawoong Jeong

In a financial market, for agents with long investment horizons or at times of severe market stress, it is often changes in the asset price that act as the trigger for transactions or shifts in investment position. This suggests the use of…

Trading and Market Microstructure · Quantitative Finance 2015-05-13 H. Lamba

The network paradigm is used to gain insight into the structural root causes of the resilience of consensus in dynamic collective behaviors, and to analyze the controllability of the swarm dynamics. Here we devise the dynamic signaling…

Physics and Society · Physics 2014-01-14 Mohammad Komareji , Roland Bouffanais

In this paper, we study the herding phenomena in financial markets arising from the combined effect of (1) non-coordinated collective interactions between the market players and (2) concurrent reactions of market players to dynamic market…

Computational Finance · Quantitative Finance 2017-12-05 Hyeong-Ohk Bae , Seung-yeon Cho , Sang-hyeok Lee , Seok-Bae Yun

In this paper we consider a stochastic deployment problem, where a robotic swarm is tasked with the objective of positioning at least one robot at each of a set of pre-assigned targets while meeting a temporal deadline. Travel times and…

Robotics · Computer Science 2015-11-24 Yin-Lam Chow , Marco Pavone , Brian M. Sadler , Stefano Carpin

As a typical representation of complex networks studied relatively thoroughly, financial market presents some special details, such as its nonconservation and opinions spreading. In this model, agents congregate to form some clusters, which…

Other Condensed Matter · Physics 2007-05-23 Jie Wang , Chun-Xia Yang , Pei-Ling Zhou , Ying-Di Jin , Tao Zhou , Bing-Hong Wang

Methods of general applicability are searched for in swarm intelligence with the aim of gaining new insights about natural swarms and to develop design methodologies for artificial swarms. An ideal solution could be a `swarm calculus' that…

Neural and Evolutionary Computing · Computer Science 2013-03-19 Heiko Hamann

We introduce a method to infer lead-lag networks of agents' actions in complex systems. These networks open the way to both microscopic and macroscopic states prediction in such systems. We apply this method to trader-resolved data in the…

Trading and Market Microstructure · Quantitative Finance 2018-07-27 Damien Challet , Rémy Chicheportiche , Mehdi Lallouache , Serge Kassibrakis