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We introduce a non linear pricing model of individual stock returns that defines a stickiness parameter of the returns. The pricing model resembles the capital asset pricing model used in finance but has a non linear component inspired from…

Statistical Finance · Quantitative Finance 2020-05-06 Naji Massad , Jørgen Vitting Andersen

Neuronal responses are conspicuously variable. We focus on one particular aspect of that variability: the precision of action potential timing. We show that for common models of noisy spike generation, elementary considerations imply that…

Disordered Systems and Neural Networks · Physics 2009-10-31 Guillermo A. Cecchi , Mariano Sigman , Jose-Manuel Alonso , Luis Martinez , Dante R. Chialvo , Marcelo O. Magnasco

We study how the Einstein relation between spontaneous fluctuations and the response to an external perturbation holds in the absence of currents, for the comb model and the elastic single-file, which are examples of systems with…

Statistical Mechanics · Physics 2015-05-27 D Villamaina , A Sarracino , G Gradenigo , A Puglisi , A Vulpiani

We present a model describing the competition between information transmission and decision making in financial markets. The solution of this simple model is recalled, and possible variations discussed. It is shown numerically that despite…

Adaptation and Self-Organizing Systems · Physics 2009-10-31 R. D'Hulst , G. J. Rodgers

Reaction-diffusion systems driven far from thermodynamic equilibrium through the injection of energy can support multiple distinct spatial patterns that persist as long-lived dynamical phases. The stability of these metastable phases is not…

Statistical Mechanics · Physics 2026-03-13 Eric R. Heller , David T. Limmer

A dynamical system is said to undergo rate-induced tipping when it fails to track its quasi-equilibrium state due to an above-critical-rate change of system parameters. We study a prototypical model for rate-induced tipping, the saddle-node…

Dynamical Systems · Mathematics 2016-10-12 Paul Ritchie , Jan Sieber

Due to inherent noise in intracellular networks cellular decisions can be random, so genetically identical cells can display different phenotypic behavior even in identical environments. Most previous work in understanding the…

Molecular Networks · Quantitative Biology 2015-06-15 Michael Assaf , Elijah Roberts , Zaida Luthey-Schulten , Nigel Goldenfeld

Keeping a basic tenet of economic theory, rational expectations, we model the nonlinear positive feedback between agents in the stock market as an interplay between nonlinearity and multiplicative noise. The derived hyperbolic stochastic…

Statistical Mechanics · Physics 2009-11-07 D. Sornette , J. V. Andersen

Neurons in the nervous system are submitted to distinct sources of noise, such as ionic-channel and synaptic noise, which introduces variability in their responses to repeated presentations of identical stimuli. This motivates the use of…

We study an extended system that without noise shows a spatially homogeneous state, but when submitted to an adequate multiplicative noise, some "noise-induced patterns" arise. The stochastic resonance between these structures is…

Pattern Formation and Solitons · Physics 2013-05-29 B. von Haeften , G. Izús , S. Mangioni , A. D. Sánchez , H. S. Wio

Organisms and ecological groups accumulate evidence to make decisions. Classic experiments and theoretical studies have explored this process when the correct choice is fixed during each trial. However, we live in a constantly changing…

Neurons and Cognition · Quantitative Biology 2015-10-01 Alan Veliz-Cuba , Zachary P. Kilpatrick , Kresimir Josic

The problem of noise-induced escape from a metastable state arises in physics, chemistry, biology, systems engineering, and other areas. The problem is well understood when the underlying dynamics of the system obey detailed balance. When…

chao-dyn · Physics 2008-02-03 Robert S. Maier , D. L. Stein

The theory of stochastic resetting asserts that restarting a stochastic process can expedite its completion. In this paper, we study the escape process of a Brownian particle in an open Hamiltonian system that suffers noise-enhanced…

Statistical Mechanics · Physics 2024-01-23 Julia Cantisán , Alexandre R. Nieto , Jesús M. Seoane , Miguel A. F. Sanjuán

We introduce a model of super-exponential financial bubbles with two assets (risky and risk-free), in which rational investors and noise traders co-exist. Rational investors form expectations on the return and risk of a risky asset and…

Statistical Finance · Quantitative Finance 2014-03-11 T. Kaizoji , M. Leiss , A. Saichev , D. Sornette

When modelling driven steady states of matter, it is common practice either to choose transition rates arbitrarily, or to assume that the principle of detailed balance remains valid away from equilibrium. Neither of those practices is…

Statistical Mechanics · Physics 2009-11-10 R. M. L. Evans

A theoretical approach for characterising the influence of asymmetry of noise distribution on the escape rate of a multi-stable system is presented. This was carried out via the estimation of an action, which is defined as an exponential…

Mesoscale and Nanoscale Physics · Physics 2014-02-26 I. A. Khovanov , N. A. Khovanova

In this paper we aim to improve existing empirical exchange rate models by accounting for uncertainty with respect to the underlying structural representation. Within a flexible Bayesian non-linear time series framework, our modeling…

Econometrics · Economics 2018-12-04 Niko Hauzenberger , Florian Huber

Stochastic resetting and noise-enhanced stability are two phenomena which can affect the lifetime and relaxation of nonequilibrium states. They can be considered as measures of controlling the efficiency of the completion process when a…

Statistical Mechanics · Physics 2022-06-22 Karol Capała , Bartłomiej Dybiec , Ewa Gudowska-Nowak

The efficient market hypothesis (EMH), based on rational expectations and market equilibrium, is the dominant perspective for modelling economic markets. However, the most notable critique of the EMH is the inability to model periods of…

Multiagent Systems · Computer Science 2023-02-14 Benjamin Patrick Evans , Mikhail Prokopenko

In this article, we discuss a dynamical stochastic model that represents the time evolution of income distribution of a population, where the dynamics develop from an interplay of multiple economic exchanges in the presence of…

Economics · Quantitative Finance 2017-02-28 Maria Letizia Bertotti , Amit K Chattopadhyay , Giovanni Modanese
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