Related papers: Three-state Opinion Dynamics for Financial Markets…
We attempt to explain stock market dynamics in terms of the interaction among three variables: market price, investor opinion and information flow. We propose a framework for such interaction and apply it to build a model of stock market…
According to mass media theory, the dissemination of messages and the evolution of opinions in social networks follow a two-step process. First, opinion leaders receive the message from the message sources, and then they transmit their…
In this study, I present a theoretical social learning model to investigate how confirmation bias affects opinions when agents exchange information over a social network. Hence, besides exchanging opinions with friends, agents observe a…
The complexity of financial markets arise from the strategic interactions among agents trading stocks, which manifest in the form of vibrant correlation patterns among stock prices. Over the past few decades, complex financial markets have…
Within the framework of a simple model for social influence, the Taylor model, we analytically investigate the role of stubborn agents in the overall opinion dynamics of networked systems. Similar to zealots, stubborn agents are biased…
Financial stock returns correlations have been studied in the prism of random matrix theory, to distinguish the signal from the "noise". Eigenvalues of the matrix that are above the rescaled Marchenko Pastur distribution can be interpreted…
The inference of outcomes in dynamic processes from structural features of systems is a crucial endeavor in network science. Recent research has suggested a machine learning-based approach for the interpretation of dynamic patterns emerging…
Imitative and contrarian behaviors are the two typical opposite attitudes of investors in stock markets. We introduce a simple model to investigate their interplay in a stock market where agents can take only two states, bullish or bearish.…
We present numerical simulations of a model of social influence, where the opinion of each agent is represented by a binary vector. Agents adjust their opinions as a result of random encounters, whenever the difference between opinions is…
We introduce a new Self-Organized Criticality (SOC) model for simulating price evolution in an artificial financial market, based on a multilayer network of traders. The model also implements, in a quite realistic way with respect to…
A growing body of studies on systemic risk in financial markets has emphasized the key importance of taking into consideration the complex interconnections among financial institutions. Much effort has been put in modeling the contagion…
A characteristic feature of complex systems in general is a tight coupling between their constituent parts. In complex socio-economic systems this kind of behavior leads to self-organization, which may be both desirable (e.g. social…
We study a stochastic model of anonymous influence with conformist and anti-conformist individuals. Each agent with a `yes' or `no' initial opinion on a certain issue can change his opinion due to social influence. We consider anonymous…
In many real-world complex systems, the time-evolution of the network's structure and the dynamic state of its nodes are closely entangled. Here, we study opinion formation and imitation on an adaptive complex network which is dependent on…
In this paper, we investigate the self-affirmation effect on formation of public opinion in a directed small-world social network. The system presents a non-equilibrium phase transition from a consensus state to a disordered state with…
Public opinion is subject to peer interaction via social networks and external pressure from the media, advertising, and other actors. In this paper, we study the interaction between external and peer influence on the stochastic opinion…
We propose a stochastic model of opinion exchange in networks. A finite set of agents is organized in a fixed network structure. There is a binary state of the world and each agent receives a private signal on the state. We model beliefs as…
We address microscopic, agent based, and macroscopic, stochastic, modeling of the financial markets combining it with the exogenous noise. The interplay between the endogenous dynamics of agents and the exogenous noise is the primary…
We study a dynamical Ising model of agents' opinions (buy or sell) with coupling coefficients reassessed continuously in time according to how past external news (magnetic field) have explained realized market returns. By combining herding,…
In recent years networks have gained unprecedented attention in studying a broad range of topics, among them in complex systems research. In particular, multi-agent systems have seen an increased recognition of the importance of the…