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Economists often estimate economic models on data and use the point estimates as a stand-in for the truth when studying the model's implications for optimal decision-making. This practice ignores model ambiguity, exposes the decision…

Econometrics · Economics 2021-10-07 Maximilian Blesch , Philipp Eisenhauer

In the context of a large class of stochastic processes used to describe the dynamics of wealth growth, we prove a set of inequalities establishing necessary and sufficient conditions in order to avoid infinite wealth concentration. These…

Theoretical Economics · Economics 2023-03-02 Valerio Astuti

We study the competitive equilibrium of large random economies with linear activities using methods of statistical mechanics. We focus on economies with $C$ commodities, $N$ firms, each running a randomly drawn linear technology, and one…

Statistical Mechanics · Physics 2008-12-10 A. De Martino , M. Marsili , I. Pérez Castillo

Polarization is a well-documented phenomenon across a wide range of social issues. However, prevailing theories often compartmentalize the examination of herding behavior and opinion convergence within different contexts. In this study, we…

Theoretical Economics · Economics 2024-05-03 Ugo Bolletta , Paolo Pin

We propose a simple framework to understand commonly observed crisis waves in macroeconomic Agent Based models, that is also relevant to a variety of other physical or biological situations where synchronization occurs. We compute exactly…

Statistical Mechanics · Physics 2015-03-03 Stanislao Gualdi , Jean-Philippe Bouchaud , Giulia Cencetti , Marco Tarzia , Francesco Zamponi

We analyze networked heterogeneous nonlinear systems, with diffusive coupling and interconnected over a generic static directed graph. Due to the network's hetereogeneity, complete synchronization is impossible, in general, but an emergent…

Optimization and Control · Mathematics 2022-06-01 Mohamed Maghenem , Elena Panteley , Antonio Loria

How do networks of relationships evolve over time? We analyse a dataset tracking the social interactions of 900 individuals over four years. Despite continuous shifts in individual relationships, the macroscopic structural properties of the…

Physics and Society · Physics 2025-06-04 Miguel A. González-Casado , Andreia Sofia Teixeira , Angel Sánchez

We propose a novel kinetic exchange model differing from previous ones in two main aspects. First, the basic dynamics is modified in order to represent economies where immediate wealth exchanges are carried out, instead of reshufflings or…

General Finance · Quantitative Finance 2015-05-07 Els Heinsalu , Marco Patriarca

We propose a simple model that describes the dynamics of efficiencies of competing agents. Agents communicate leading to increase of efficiencies of underachievers, and an efficiency of each agent can increase or decrease irrespectively of…

Statistical Mechanics · Physics 2009-10-31 S. N. Majumdar , P. L. Krapivsky

We study the effects of introducing information inefficiency in a model for a random linear economy with a representative consumer. This is done by considering statistical, instead of classical, economic general equilibria. Employing two…

General Finance · Quantitative Finance 2016-10-11 Joao Pedro Jerico , Renato Vicente

We introduce and study a non-equilibrium continuous-time dynamical model of the price of a single asset traded by a population of heterogeneous interacting agents in the presence of uncertainty and regulatory constraints. The model takes…

Adaptation and Self-Organizing Systems · Physics 2009-04-23 V. I. Yukalov , D. Sornette , E. P. Yukalova

We propose a general scenario to analyze social and economic changes in modern environments. We illustrate the ideas with a model that incorporating the main trends is simple enough to extract analytical results and, at the same time,…

Statistical Mechanics · Physics 2009-10-31 A. Arenas , A. Diaz-Guilera , C. J. Perez , F. Vega-Redondo

Epidemic models study the spread of an undesired agent through a population, be it infectious diseases through a country, misinformation in online social media, or pests infesting a region. In combating these epidemics, we rely neither on…

Numerous online services are data-driven: the behavior of users affects the system's parameters, and the system's parameters affect the users' experience of the service, which in turn affects the way users may interact with the system. For…

Machine Learning · Computer Science 2024-04-30 Sarah Dean , Mihaela Curmei , Lillian J. Ratliff , Jamie Morgenstern , Maryam Fazel

We consider the relationship between economic activity and intervention, including monetary and fiscal policy, using a universal dynamic framework. Central bank policies are designed for growth without excess inflation. However,…

Physics and Society · Physics 2018-01-01 Yaneer Bar-Yam , Jean Langlois-Meurinne , Mari Kawakatsu , Rodolfo Garcia

In recent years networks have gained unprecedented attention in studying a broad range of topics, among them in complex systems research. In particular, multi-agent systems have seen an increased recognition of the importance of the…

Physics and Society · Physics 2007-05-23 László Gulyás , Elenna R. Dugundji

The nexus between debt and inequality has attracted considerable scholarly attention in the wake of the global financial crisis. One prominent candidate to explain the striking co-evolution of income inequality and private debt in this…

General Economics · Economics 2022-04-05 Jan Schulz , Daniel M. Mayerhoffer

We study a system of $N$ agents, whose wealth grows linearly, under the effect of stochastic resetting and interacting via a tax-like dynamics -- all agents donate a part of their wealth, which is, in turn, redistributed equally among all…

Physics and Society · Physics 2022-05-11 Ion Santra

We introduce and solve analytically a model for the development of disparate social classes in a competitive population. Individuals advance their fitness by competing against those in lower classes, and in parallel, individuals decline due…

Statistical Mechanics · Physics 2007-05-23 E. Ben-Naim , S. Redner

An heuristic model of the society, as an assembly of weakly interacting individuals, is discussed. The model allows to connect macroscopic phenomena with features of relations between individuals. Addressing to the problem of inequality, a…

Biological Physics · Physics 2023-10-16 Vladimir Pokrovskii