Related papers: Potterian Economics
In this feasibility study, the impact of academic research from social sciences and humanities on technological innovation is explored through a study of citations patterns of journal articles in patents. Specifically we focus on citations…
This paper reports the results of a series of field experiments designed to investigate how peer effects operate in a real work setting. Workers were hired from an online labor market to perform an image-labeling task and, in some cases, to…
I propose a new conceptual framework to disentangle the impacts of weather and climate on economic activity and growth: A stochastic frontier model with climate in the production frontier and weather shocks as a source of inefficiency. I…
Cognitive biases, well-studied in humans, can also be observed in LLMs, affecting their reliability in real-world applications. This paper investigates the anchoring effect in LLM-driven price negotiations. To this end, we instructed seller…
In this study, we introduce a physical model inspired by statistical physics for predicting price volatility and expected returns by leveraging Level 3 order book data. By drawing parallels between orders in the limit order book and…
ChatGPT disrupted the application of machine-learning methods and drastically reduced the usage barrier. Chatbots are now widely used in a lot of different situations. They provide advice, assist in writing source code, or assess and…
Knowledge amount is an integral indicator of the development of society. Humanity produces knowledge in response to challenges from nature and society. Knowledge production depends on population size and human productivity. Productivity is…
We study the statistics of earning forecasts of US, EU, UK and JP stocks during the period 1987-2004. We confirm, on this large data set, that financial analysts are on average over-optimistic and show a pronounced herding behavior. These…
It is very common to observe crowds of individuals solving similar problems with similar information in a largely independent manner. We argue here that crowds can become "smarter," i.e., more efficient and robust, by partially following…
In the process of enacting or introducing a new policy, policymakers frequently consider the population's responses. These considerations are critical for effective governance. There are numerous methods to gauge the ground sentiment from a…
This paper gives a critical account of the minority game literature. The minority game is a simple congestion game: players need to choose between two options, and those who have selected the option chosen by the minority win. The learning…
Macroeconomics essentially discusses macroeconomic phenomena from the perspectives of various schools of economic thought, each of which takes different views on how macroeconomic agents make decisions and how the corresponding markets…
We discuss how minimal financial market models can be constructed by bridging the gap between two existing, but incomplete, market models: a model in which a population of virtual traders make decisions based on common global information…
The speculation game is an agent-based toy model to investigate the dynamics of the financial market. Our model has achieved the reproduction of 10 of the well-known stylized facts for financial time series. However, there is also a…
This paper aims to study the impact of public and private investments on the economic growth of developing countries. The study uses the panel data of 39 developing countries covering the periods 1990-2019. The study was based on the…
Large language models demonstrate strong problem-solving abilities through reasoning techniques such as chain-of-thought prompting and reflection. However, it remains unclear whether these reasoning capabilities extend to a form of social…
Standard economic theory uses mathematics as its main means of understanding, and this brings clarity of reasoning and logical power. But there is a drawback: algebraic mathematics restricts economic modeling to what can be expressed only…
Information technology is in the midst of a revolution in which omnipresent data collection and machine learning are impacting the human world as never before. The word ``intelligence'' is being used as a North Star for the development of…
Despite widespread speculation about artificial intelligence's impact on the future of work, we lack systematic empirical evidence about how these systems are actually being used for different tasks. Here, we present a novel framework for…
Trade is one of the essential feature of human intelligence. The securities market is the ultimate expression of it. The fundamental indicators of stocks include information as well as the effects of noise and bias on the stock prices;…