Related papers: Opinion Dynamics in Financial Markets via Random N…
It is sometimes acknowledged that (sell-side) equity analysts' recommendations influence investors and therefore market prices. In particular, the S&P 500 is expected to decline (respectively rise) when analysts revise their targets…
The correlation matrix formalism is used to study temporal aspects of the stock market evolution. This formalism allows to decompose the financial dynamics into noise as well as into some coherent repeatable intraday structures. The present…
We study the evolution of opinions inside a population of interacting large language models (LLMs). Every LLM needs to decide how much funding to allocate to an item with three initial possibilities: full, partial, or no funding. We…
We propose a continuous-time nonlinear model of opinion dynamics with utility-maximizing agents connected via a social influence network. A distinguishing feature of the proposed model is the inclusion of an opinion-dependent…
It is known that individual opinions on different policy issues often align to a dominant ideological dimension (e.g. "left" vs. "right") and become increasingly polarized. We provide an agent-based model that reproduces these two stylized…
Many models have been proposed to explain opinion formation in groups of individuals; most of these models study opinion propagation as the interaction between nodes/agents in a social network. Opinion formation is a complex process and a…
Opinion Dynamics is an interdisciplinary area of research. Psychology and Sociology have proposed models of how individuals form opinions and how social interactions influence this process. Socio-Physicists have interpreted patterns in…
The study of opinions $-$ e.g., their formation and change, and their effects on our society $-$ by means of theoretical and numerical models has been one of the main goals of sociophysics until now, but it is one of the defining topics…
A long line of work in social psychology has studied variations in people's susceptibility to persuasion -- the extent to which they are willing to modify their opinions on a topic. This body of literature suggests an interesting…
We propose a nonlinear voter model to study the emergence of global consensus in opinion dynamics. In our model, agent $i$ agrees with one of binary opinions with the probability that is a power function of the number of agents holding this…
In this work we study opinion formation on a fully-connected population participating of a public debate with two distinct choices, where the agents may adopt three different attitudes (favorable to either one choice or to the other, or…
We present a novel agent-based approach to simulating an over-the-counter (OTC) financial market in which trades are intermediated solely by market makers and agent visibility is constrained to a network topology. Dynamics, such as changes…
In this paper, we study the contextual dynamic pricing problem where the market value of a product is linear in its observed features plus some market noise. Products are sold one at a time, and only a binary response indicating success or…
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…
Opinion dynamics of random-walking agents on finite two-dimensional lattices is studied. In the model, the opinion is continuous, and both the lattice and the opinion can be either periodic or non-periodic. At each time step, all agents…
The cognitive process of opinion formation is often characterized by stubbornness or resistance of agents to changes of opinion. To capture such a feature we introduce a constant latency time in the standard voter model of opinion dynamics:…
We study the evolution of opinions on a directed network with community structure. Individuals update their opinions synchronously based on a weighted average of their neighbors' opinions, their own previous opinions, and external media…
We investigate the full dynamics of capital allocation and wealth distribution of heterogeneous agents in a frictional economy during booms and busts using tools from mean-field games. Two groups in our models, namely the expert and the…
We consider a financial market in which traders potentially face restrictions in trading some of the available securities. Traders are heterogeneous with respect to their beliefs and risk profiles, and the market is assumed thin: traders…
Most economic theories typically assume that financial market participants are fully rational individuals and use mathematical models to simulate human behavior in financial markets. However, human behavior is often not entirely rational…