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On a capital market the social group is formed from traders. Individual behaviour of agents is influenced by the need to associate with other agents and to obtain the approval of other agents in the group. Making decisions an individual…

Other Condensed Matter · Physics 2021-08-19 Ondrej Hudak , Jana Tothova

A model of open economics composed of producers and speculators is investigated by numerical simulations. The capital flows from the environment to the producers and from them to the speculators. The price fluctuations are suppressed by the…

Statistical Mechanics · Physics 2009-10-31 Frantisek Slanina , Yi-Cheng Zhang

In the present paper a model of a market consisting of real and financial interacting sectors is studied. Agents populating the stock market are assumed to be not able to observe the true underlying fundamental, and their beliefs are biased…

General Finance · Quantitative Finance 2018-06-13 Fausto Cavalli , Ahmad Naimzada , Nicolò Pecora , Marina Pireddu

Firms compete for clients, creating distributions of market shares ranging from domination by a few giant companies to markets in which there are many small firms. These market structures evolve in time, and may remain stable for many years…

Physics and Society · Physics 2024-01-09 Joseph Hickey

We propose and study a simple model of dynamical redistribution of capital in a diversified portfolio. We consider a hypothetical situation of a portfolio composed of N uncorrelated stocks. Each stock price follows a multiplicative random…

Statistical Mechanics · Physics 2015-06-25 Matteo Marsili , Sergei Maslov , Yi-Cheng Zhang

We study an agent-based model of evolution of wealth distribution in a macro-economic system. The evolution is driven by multiplicative stochastic fluctuations governed by the law of proportionate growth and interactions between agents. We…

Physics and Society · Physics 2019-11-22 Zdzislaw Burda , Pawel Wojcieszak , Konrad Zuchniak

The major perspective of this paper is to provide more evidence into the empirical determinants of capital structure adjustment in different macroeconomics states by focusing and discussing the relative importance of firm-specific and…

Economics · Quantitative Finance 2018-01-23 Andreas Kaloudis , Dimitrios Tsolis

Market confidence is essential for successful investing. By incorporating multi-market into the evolutionary minority game, we investigate the effects of investor beliefs on the evolution of collective behaviors and asset prices. When there…

Trading and Market Microstructure · Quantitative Finance 2015-06-18 Li-Xin Zhong , Wen-Juan Xu , Ping Huang , Chen-Yang Zhong , Tian Qiu

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…

Mathematical Finance · Quantitative Finance 2025-02-18 Hoang Vu , Tomoyuki Ichiba

In this paper, we investigate the economic mobility in some money transfer models which have been applied into the research on wealth distribution. We demonstrate the mobility by recording the time series of agents' ranks and observing…

Physics and Society · Physics 2009-11-11 Ning Ding , Ning Xi , Yougui Wang

A common assumption of political economy is that profit rates across firms or sectors tend to uniformity, and often models are formulated in which this tendency is assumed to have been realised. But in reality this tendency is never…

Other Condensed Matter · Physics 2011-03-24 Ian Wright

Understanding the statistical dynamics of growth and inequality is a fundamental challenge to ecology and society. Recent analyses of wealth and income dynamics in contemporary societies show that economic inequality is very dynamic and…

Physics and Society · Physics 2022-10-19 Jordan T. Kemp , Luis M. A. Bettencourt

A dynamic model of the social relations between workers and capitalists is introduced. The model is deduced from the assumption that the law of value is an organising principle of modern economies. The model self-organises into a dynamic…

Condensed Matter · Physics 2011-03-24 Ian Wright

We define and study a class of resources allocation processes where $gN$ agents, by repeatedly visiting $N$ resources, try to converge to optimal configuration where each resource is occupied by at most one agent. The process exhibits a…

Physics and Society · Physics 2015-05-30 Asim Ghosh , Daniele De Martino , Arnab Chatterjee , Matteo Marsili , Bikas K. Chakrabarti

When analyzing the components influencing the stock prices, it is commonly believed that economic activities play an important role. More specifically, asset prices are more sensitive to the systematic economic news that impose a pervasive…

General Economics · Economics 2024-01-10 Yue Chen , Mohan Li

We consider an economy made of competing firms which are heterogeneous in their capital and use several inputs for producing goods. Their consumption policy is fixed rationally by maximizing a utility and their capital cannot fall below a…

Analysis of PDEs · Mathematics 2022-07-13 Yves Achdou , Guillaume Carlier , Quentin Petit , Daniela Tonon

We propose a set of conservative models in which agents exchange wealth with a preference in the choice of interacting agents in different ways. The common feature in all the models is that the temporary values of financial status of agents…

Physics and Society · Physics 2015-06-22 Sanchari Goswami , Parongama Sen

A dynamical model of capital exchange is introduced in which a specified amount of capital is exchanged between two individuals when they meet. The resulting time dependent wealth distributions are determined for a variety of exchange…

Statistical Mechanics · Physics 2009-10-30 S. Ispolatov , P. L. Krapivsky , S. Redner

The emergence of labor division in multi-agent system is analyzed by the method of statistical physics. Considering a system consists of N homogeneous agents. Their behaviors are determined by the returns from their production. Using the…

Statistical Mechanics · Physics 2009-11-07 Jinshan Wu , Zengru Di , Z. R. Yang

This paper presents an analytical treatment of economic systems with an arbitrary number of agents that keeps track of the systems' interactions and agents' complexity. This formalism does not seek to aggregate agents. It rather replaces…

General Economics · Economics 2018-10-18 Aïleen Lotz , Pierre Gosselin , Marc Wambst