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This work investigates the effects of complex networks on the collective behavior of a three-state opinion formation model in economic systems. Our model considers two distinct types of investors in financial markets: noise traders and…

We investigate the financial market dynamics by introducing a heterogeneous agent-based opinion formation model. In this work, we organize the individuals in a financial market by their trading strategy, namely noise traders and…

Statistical Finance · Quantitative Finance 2022-12-28 Mateus F. B. Granha , André L. M. Vilela , Chao Wang , Kenric P. Nelson , H. Eugene Stanley

We present a novel microscopic stock market model consisting of a large number of random agents modeling traders in a market. Each agent is characterized by a set of parameters that serve to make iterated predictions of two successive…

Adaptation and Self-Organizing Systems · Physics 2009-11-07 R. Rothenstein , K. Pawelzik

We are looking for the agent-based treatment of the financial markets considering necessity to build bridges between microscopic, agent based, and macroscopic, phenomenological modeling. The acknowledgment that agent-based modeling…

Statistical Finance · Quantitative Finance 2019-01-01 V. Gontis , A. Kononovicius

In the present work we introduce a novel multi-agent model with the aim to reproduce the dynamics of a double auction market at microscopic time scale through a faithful simulation of the matching mechanics in the limit order book. The…

Trading and Market Microstructure · Quantitative Finance 2015-05-18 Marco Bartolozzi

In this work we study the opinion formation in a voter-like model defined on a square lattice of linear size $L$. The agents may be in three different states, representing any public debate with three choices (yes, no, undecided). We…

Physics and Society · Physics 2013-07-18 Nuno Crokidakis

This paper outlines an agent-based model of a simple financial market in which a single asset is available for trade by three different types of traders. The model was first introduced in the PhD thesis of one of the authors, see reference…

Trading and Market Microstructure · Quantitative Finance 2019-01-17 Elena Green , Daniel M. Heffernan

The dynamics of opinion formation in large groups of people is a complex non-linear phenomenon whose investigation is just at the beginning. Both collective behaviour and personal view play an important role in this mechanism. In the…

Physics and Society · Physics 2010-02-17 M. Bartolozzi , B. Leinweber , A. W. Thomas

Processes of individual attitude formation and their macroscopic consequences have become an intriguing research topic, and agent-based models of opinion formation have been proposed to understand this phenomenon. This study conducted an…

Physics and Society · Physics 2020-11-30 Hirofumi Takesue

The effects of interpersonal interactions on individual's agreements result in a social aggregation process which is reflected in the formation of collective states, as for instance, groups of individuals with a similar opinion about a…

Physics and Society · Physics 2017-02-08 Pablo Balenzuela , Juan Pablo Pinasco , Viktoriya Semeshenko

Agent-based models provide a constructive approach to studying emergent dynamics in life-like systems composed of interacting, adaptive agents. Financial markets serve as a canonical example of such systems, where collective price dynamics…

Computational Finance · Quantitative Finance 2026-04-28 Ryuji Hashimoto , Ryosuke Takata , Masahiro Suzuki , Yuki Tanaka , Kiyoshi Izumi

We describe a new model to simulate the dynamic interactions between market price and the decisions of two different kind of traders. They possess spatial mobility allowing to group together to form coalitions. Each coalition follows a…

Statistical Mechanics · Physics 2009-10-31 Filippo Castiglione

In this paper we present an interacting-agent model of stock markets. We describe a stock market through an Ising-like model in order to formulate the tendency of traders getting to be influenced by the other traders' investment attitudes…

Physics and Society · Physics 2013-09-11 Taisei Kaizoji

We introduce the confident voter model, in which each voter can be in one of two opinions and can additionally have two levels of commitment to an opinion --- confident and unsure. Upon interacting with an agent of a different opinion, a…

Physics and Society · Physics 2015-03-19 D. Volovik , S. Redner

Imitative and contrarian behaviors are the two typical opposite attitudes of investors in stock markets. We introduce a simple model to investigate their interplay in a stock market where agents can take only two states, bullish or bearish.…

Statistical Mechanics · Physics 2008-12-02 A. Corcos , J. -P. Eckmann , A. Malaspinas , Y. Malevergne , D. Sornette

A three-state model based on the Potts model is proposed to simulate financial markets. The three states are assigned to "buy", "sell" and "inactive" states. The model shows the main stylized facts observed in the financial market:…

Other Condensed Matter · Physics 2009-11-11 Tetsuya Takaishi

The ultimate value of theories of the fundamental mechanisms comprising the asset price in financial systems will be reflected in the capacity of such theories to understand these systems. Although the models that explain the various states…

Trading and Market Microstructure · Quantitative Finance 2016-04-27 Kyubin Yim , Gabjin Oh , Seunghwan Kim

In this work we study the problem of tax evasion on a fully-connected population. For this purpose, we consider that the agents may be in three different states, namely honest tax payers, tax evaders and undecided, that are individuals in…

Physics and Society · Physics 2014-08-13 Nuno Crokidakis

Involving effects of media, opinion leader and other agents on the opinion of individuals of market society, a trader based model is developed and utilized to simulate price via supply and demand. Pronounced effects are considered with…

Physics and Society · Physics 2009-11-11 Caglar Tuncay

Analytical approaches in models of opinion formation have been extensively studied either for an opinion represented as a discrete or a continuous variable. In this paper, we analyze a model which combines both approaches. The state of an…

Physics and Society · Physics 2023-02-01 Lucía Pedraza , Juan Pablo Pinasco , Viktoriya Semeshenko , Pablo Balenzuela
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