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We study the collective behavior of interacting agents in a simple model of market economics originally introduced by N{\o}rrelykke and Bak. A general theoretical framework for interacting traders on an arbitrary network is presented, with…

General Finance · Quantitative Finance 2017-05-24 Avinash Chand Yadav , Kaustubh Manchanda , Ramakrishna Ramaswamy

Quantum criticality provides an important route to revealing universal non-equilibrium behaviour. A canonical example of a quantum critical point is the Bose-Hubbard model, which we study under the application of an electric field. A…

Strongly Correlated Electrons · Physics 2015-06-18 A. M. Berridge , A. G. Green

We identify a new universality class of phase transitions that arises in non-normal systems, challenging the classical view that transitions require eigenvalue instabilities. In traditional bifurcation theory, critical phenomena emerge when…

Statistical Mechanics · Physics 2025-10-10 Virgile Troude , Didier Sornette

We study Markov decision problems where the agent does not know the transition probability function mapping current states and actions to future states. The agent has a prior belief over a set of possible transition functions and updates…

Economics · Quantitative Finance 2018-01-04 Ignacio Esponda , Demian Pouzo

In the paper, the principal aspects of the mathematical theory of equilibrium thermodynamics are distinguished. It is proved that the points of degeneration of a Bose gas of fractal dimension in the momentum space coincide with critical…

General Physics · Physics 2015-06-03 V. P. Maslov

Trading a financial asset pushes its price as well as the prices of other assets, a phenomenon known as cross-impact. The empirical estimation of this effect on complex financial instruments, such as derivatives, is an open problem. To…

Trading and Market Microstructure · Quantitative Finance 2022-03-30 Mehdi Tomas , Iacopo Mastromatteo , Michael Benzaquen

We study the conditions under which input-output networks can dynamically attain a competitive equilibrium, where markets clear and profits are zero. We endow a classical firm network model with minimal dynamical rules that reduce…

General Economics · Economics 2021-11-04 Théo Dessertaine , José Moran , Michael Benzaquen , Jean-Philippe Bouchaud

In an incomplete semimartingale model of a financial market, we consider several risk-averse financial agents who negotiate the price of a bundle of contingent claims. Assuming that the agents' risk preferences are modelled by convex…

Risk Management · Quantitative Finance 2009-01-22 Michail Anthropelos , Gordan Zitkovic

The term boundary crisis refers to the destruction or creation of a chaotic attractor when parameters vary. The locus of a boundary crisis may contain regions of positive Lebesgue measure marking the transition from regular dynamics to the…

Dynamical Systems · Mathematics 2017-05-24 Alexander Lohse , Alexandre Rodrigues

We study the equilibrium simplex of Nica-Pimsner algebras arising from product systems of finite rank on the free abelian semigroup. First we show that every equilibrium state has a convex decomposition into parts parametrized by ideals on…

Operator Algebras · Mathematics 2020-01-01 Evgenios T. A. Kakariadis

A prototypical model of symmetry-broken active matter -- biased quorum-sensing active particles (bQSAPs) -- is used to extend notions of dynamic critical phenomena to the paradigmatic setting of driven transport, where characteristic…

Statistical Mechanics · Physics 2025-06-26 Richard E. Spinney , Richard G. Morris

Why do capitalist economies recurrently generate crises whose severity is disproportionate to the size of the triggering shock? This paper proposes a structural answer grounded in the evolutionary geometry of production networks. As…

Physics and Society · Physics 2026-04-16 Diego Vallarino

This paper studies the equilibrium price of an asset that is traded in continuous time between N agents who have heterogeneous beliefs about the state process underlying the asset's payoff. We propose a tractable model where agents maximize…

Mathematical Finance · Quantitative Finance 2020-03-26 Johannes Muhle-Karbe , Marcel Nutz , Xiaowei Tan

We introduce a heterogeneous formulation of a contagious McKean-Vlasov system, whose inherent heterogeneity comes from asymmetric interactions with a natural and highly tractable structure. It is shown that this formulation characterises…

Probability · Mathematics 2022-09-28 Zachary Feinstein , Andreas Sojmark

Boundary conditions may change the phase diagram of non-equilibrium statistical systems like the one-dimensional asymmetric simple exclusion process with and without particle number conservation. Using the quantum Hamiltonian approach, the…

High Energy Physics - Theory · Physics 2009-10-22 Malte Henkel , Gunter Schütz

We study a large economy in which firms cannot compute exact solutions to the non-linear equations that characterize the equilibrium price at which they can sell future output. Instead, firms use polynomial expansions to approximate prices.…

Economics · Quantitative Finance 2016-11-08 Wolfgang Kuhle

The use of emergent constraints to quantify uncertainty for key policy relevant quantities such as Equilibrium Climate Sensitivity (ECS) has become increasingly widespread in recent years. Many researchers, however, claim that emergent…

Applications · Statistics 2020-02-19 Daniel B. Williamson , Philip G. Sansom

The payback period is unambiguously defined for conventional investment projects, projects in which a series of cash outflows is followed by a series of cash inflows. Its definition for nonconventional projects is more challenging, since…

General Economics · Economics 2026-03-26 Mikhail V. Sokolov

Financial global crisis has devastating impacts to economies since early XX century and continues to impose increasing collateral damages for governments, enterprises, and society in general. Up to now, all efforts to obtain efficient…

Statistical Finance · Quantitative Finance 2019-04-09 Bruna Amin Gonçalves , Laura Carpi , Osvaldo A. Rosso , Martin G. Ravetti , A. P. F Atman

Dynamical phase transitions (DPTs) characterize critical changes in system behavior occurring at finite times, providing a lens to study nonequilibrium phenomena beyond conventional equilibrium physics. While extensively studied in quantum…

Physics and Society · Physics 2024-12-10 Jiazhen Liu , Nathaniel M. Aden , Debasish Sarker , Chaoming Song