Related papers: Rational Bubbles Attached to Real Assets
We study the stability of a discrete-time dynamical mean-field Ising model to perturbations. This model belongs to a broader class of models often used in the study of opinion dynamics in financial markets. In the presence of noise, these…
Eternal inflation is a seemingly generic consequence of theories that give rise to accelerated expansion of the universe and possess multiple vacuum states. Making predictions in an eternally inflating universe is notoriously difficult…
The standard asset pricing models (the CCAPM and the Epstein-Zin non-expected utility model) counterintuitively predict that equilibrium asset prices can rise if the representative agent's risk aversion increases. If the income effect,…
For sufficiently ample linear systems on rational surfaces we show that a very general associated Brauer-Severi surface bundle is not stably rational.
A model that gives rise to vacuum bubbles is considered where the domain wall field interacts with another real scalar field, resulting in the formation of domain ribbons within the host domain wall. Ribbon-antiribbon annihilations produce…
Bubbles in the interstellar medium are produced by astrophysical sources, which continuously or explosively deposit large amount of energy into the ambient medium. These expanding bubbles can drive shocks in front of them, which dynamics is…
This paper is the third in a series investigating the possibility that if we reside in an inflationary "bubble universe", we might observe the effects of collisions with other such bubbles. Here, we study the interior structure of a bubble…
Rationality is frequently associated with making the best possible decisions. It's widely acknowledged that humans, as rational beings, have limitations in their decision-making capabilities. Nevertheless, recent advancements in fields,…
Speculative bubbles have been occurring periodically in local or global real estate markets and are considered a potential cause of economic crises. In this context, the detection of explosive behaviors in the financial market and the…
We study a dynamical model of interconnected firms which allows for certain market imperfections and frictions, restricted here to be myopic price forecasts and slow adjustment of production. Whereas the standard rational equilibrium is…
The trajectories of a single bubble rising in the vicinity of a vertical solid wall are experimentally investigated. Distinct initial wall-bubble distances are considered for three different bubble rising regimes, i.e. rectilinear, planar…
Let X be a complex, rationally connected, projective manifold. We show that X admits a modification X' that contains a quasi-line, ie a smooth rational curve whose normal bundle is a direct sum of copies of O_{P^1}(1). For manifolds…
Contextuality is a feature of quantum correlations. It is crucial from a foundational perspective as a nonclassical phenomenon, and from an applied perspective as a resource for quantum advantage. It is commonly defined in terms of hidden…
We define and study a rather complex market model, inspired from the Santa Fe artificial market and the Minority Game. Agents have different strategies among which they can choose, according to their relative profitability, with the…
We present a self-consistent model for explosive financial bubbles, which combines a mean-reverting volatility process and a stochastic conditional return which reflects nonlinear positive feedbacks and continuous updates of the investors'…
Beyond its obvious macro-economic relevance, fiat money has important micro-economic implications. They matter for addressing No. 8 in Smale's "Mathematical Problems for the Next Century": extend the mathematical model of general…
I show that if the capital accumulation dynamics is stochastic a new term, in addition to that given by accounting prices, has to be introduced in order to derive a correct estimate of the genuine wealth of an economy. In a simple model…
A model of inflation is proposed in which compact extra dimensions allow a graceful exit without recourse to flat potentials or super-Planckian field values. Though bubbles of true vacuum are too sparse to uniformly reheat the Universe by…
We show that particle production during the expansion of bubbles of true vacuum in the sea of false vacuum is possible and calculate the resulting rate. As a result the nucleated bubbles cannot expand due to the transfer of false vacuum…
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…