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Behavioral Finance has become a challenge to the scientific community. Based on the assumption that behavioral aspects of investors may explain some features of the Stock Market, we propose an agent based model to study quantitatively this…

General Finance · Quantitative Finance 2017-11-23 F. M. Stefan , A. P. F. Atman

We explore the impact of social noise, characterized by nonconformist behavior, on the phase transition within the framework of the majority rule model. The order-disorder transition can reflect the consensus-polarization state in a social…

Physics and Society · Physics 2024-11-14 Roni Muslim , Didi Ahmad Mulya , Zulkaida Akbar , Rinto Anugraha NQZ

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…

Physics and Society · Physics 2008-07-15 Floriana Gargiulo , Alberto Mazzoni

We propose a new analytical method to study stochastic, binary-state models on complex networks. Moving beyond the usual mean-field theories, this alternative approach is based on the introduction of an annealed approximation for…

Physics and Society · Physics 2016-04-21 Adrián Carro , Raúl Toral , Maxi San Miguel

In this paper we present a continuous time dynamical model of heterogeneous agents interacting in a financial market where transactions are cleared by a market maker. The market is composed of fundamentalist, trend following and contrarian…

Data Analysis, Statistics and Probability · Physics 2008-12-10 Giuseppe Garofalo , Alessandro Sansone

We demonstrate using multi-layered networks, the existence of an empirical linkage between the dynamics of the financial network constructed from the market indices and the macroeconomic networks constructed from macroeconomic variables…

General Economics · Economics 2019-03-18 Kiran Sharma , Anindya S. Chakrabarti , Anirban Chakraborti

Economies are instances of complex socio-technical systems that are shaped by the interactions of large numbers of individuals. The individual behavior and decision-making of consumer agents is determined by complex psychological dynamics…

Computers and Society · Computer Science 2015-08-19 Xianlei Dong , Johan Bollen

We investigate opinion dynamics and information spreading on networks under the influence of content filtering technologies. The filtering mechanism, present in many online social platforms, reduces individuals' exposure to disagreeing…

Physics and Society · Physics 2024-01-26 Antonio F. Peralta , János Kertész , Gerardo Iñiguez

As a typical representation of complex networks studied relatively thoroughly, financial market presents some special details, such as its nonconservation and opinions spreading. In this model, agents congregate to form some clusters, which…

Other Condensed Matter · Physics 2007-05-23 Jie Wang , Chun-Xia Yang , Pei-Ling Zhou , Ying-Di Jin , Tao Zhou , Bing-Hong Wang

Understanding the social conditions that tend to increase or decrease polarization is important for many reasons. We study a network-structured agent-based model of opinion dynamics, extending a model previously introduced by Flache and…

Physics and Society · Physics 2018-08-03 Matthew A. Turner , Paul E. Smaldino

In this paper we provide a comprehensive analysis of a structural model for the dynamics of prices of assets traded in a market originally proposed in [1]. The model takes the form of an interacting generalization of the geometric Brownian…

Statistical Finance · Quantitative Finance 2018-06-06 Kartik Anand , Jonathan Khedair , Reimer Kuehn

Empirical data of supermarket sales show stylised facts that are similar to stock markets, with a broad (truncated) Levy distribution of weekly sales differences in the baseline sales [R.D. Groot, Physica A 353 (2005) 501]. To investigate…

Physics and Society · Physics 2009-11-11 Robert D. Groot

We investigate opinion dynamics in multi-agent networks when a bias toward one of two possible opinions exists; for example, reflecting a status quo vs a superior alternative. Starting with all agents sharing an initial opinion representing…

Multiagent Systems · Computer Science 2021-03-09 Aris Anagnostopoulos , Luca Becchetti , Emilio Cruciani , Francesco Pasquale , Sara Rizzo

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…

Physics and Society · Physics 2014-01-28 Nuno Crokidakis , Victor H. Blanco , Celia Anteneodo

Social groups with widely different music tastes, political convictions, and religious beliefs emerge and disappear on scales from extreme subcultures to mainstream mass-cultures. Both the underlying social structure and the formation of…

Physics and Society · Physics 2007-11-12 M. Rosvall , K. Sneppen

This paper introduces a new model of continuous opinion dynamics with random noise. The model belongs to the broad class of so called bounded confidence models. It differs from other popular bounded confidence models by the update rule,…

Adaptation and Self-Organizing Systems · Physics 2011-06-02 P. Nyczka

We study a stochastic model for the coevolution of a process of opinion formation in a population of agents and the network which underlies their interaction. Interaction links can break when agents fail to reach an opinion agreement. The…

Statistical Mechanics · Physics 2009-11-11 Santiago Gil , Damian H. Zanette

The order-disorder phase transition is a fascinating phenomenon in opinion dynamics models within sociophysics. This transition emerges due to noise parameters, interpreted as social behaviors such as anticonformity and independence…

This paper proposes a theory of stock market predictability patterns based on a model of heterogeneous beliefs. In a discrete finite time framework, some agents receive news about an asset's fundamental value through a noisy signal. The…

Pricing of Securities · Quantitative Finance 2024-06-13 Jiho Park

Analyzing stocks and making higher accurate predictions on where the price is heading continues to become more and more challenging therefore, we designed a new financial algorithm that leverages social media sentiment analysis to enhance…

Machine Learning · Computer Science 2025-02-11 SriVarsha Mulakala , Umesh Vangapally , Benjamin Larkey , Aidan Henrichs , Corey Wojslaw
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