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In online markets, agents often learn from other's actions in addition to their private information. Such observational learning can lead to herding or information cascades in which agents eventually ignore their private information and…

Social and Information Networks · Computer Science 2025-05-16 Pawan Poojary , Randall Berry

We propose a model for the diffusion of several products competing in a common market based on the generalization of the Ising model of statiscal mechanics (Potts model). Using an agent based implementation, we analyze two problems: (i) a…

Applications · Statistics 2015-06-16 Carlos E. Laciana , Nicolas Oteiza Aguirre

Motivated by sensor networks and other distributed settings, several models for distributed learning are presented. The models differ from classical works in statistical pattern recognition by allocating observations of an independent and…

Information Theory · Computer Science 2016-11-18 Joel B. Predd , Sanjeev R. Kulkarni , H. Vincent Poor

A simple model of activatory-inhibitory interactions controlling the activity of agents (substrates) through a "saturated response" dynamical rule in a scale-free network is thoroughly studied. After discussing the most remarkable dynamical…

Molecular Networks · Quantitative Biology 2007-05-23 Jesus Gomez-Gardenes , Yamir Moreno , Luis Mario Floria

We study the dynamics of the limit order book of liquid stocks after experiencing large intra-day price changes. In the data we find large variations in several microscopical measures, e.g., the volatility the bid-ask spread, the bid-ask…

Trading and Market Microstructure · Quantitative Finance 2009-10-26 Bence Toth , Janos Kertesz , J. Doyne Farmer

We consider the dynamics and the interactions of multiple reinforcement learning optimal execution trading agents interacting with a reactive Agent-Based Model (ABM) of a financial market in event time. The model represents a market ecology…

Trading and Market Microstructure · Quantitative Finance 2024-08-15 Matthew Dicks , Andrew Paskaramoorthy , Tim Gebbie

Indirect competition emerged from the complex organization of human societies, and knowledge of the existing network topology may aid in developing effective strategies for success. Here, we propose an agent-based model of competition with…

General Finance · Quantitative Finance 2011-06-28 Erika Fille Legara , Anthony Longjas , Rene Batac

We present empirical evidence that land values are scale-free and introduce a network model that reproduces the observations. The network approach to urban modelling is based on the assumption that the market dynamics that generates land…

Disordered Systems and Neural Networks · Physics 2009-11-10 Claes Andersson , Alexander Hellervik , Kristian Lindgren , Anders Hagson , Jonas Tornberg

Empirical distributions of wealth and income can be reproduced using simplified agent-based models of economic interactions, analogous to microscopic collisions of gas particles. Building upon these models of freely interacting agents, we…

Physics and Society · Physics 2020-03-10 Lennart Fernandes , Jacques Tempere

Designing a financial market that works well is very important for developing and maintaining an advanced economy, but is not easy because changing detailed rules, even ones that seem trivial, sometimes causes unexpected large impacts and…

Trading and Market Microstructure · Quantitative Finance 2021-01-08 Takanobu Mizuta

In this paper we present an interacting-agent model of stock markets. We describe a stock market through an Ising-like model in order to formulate the tendency of traders getting to be influenced by the other traders' investment attitudes…

Physics and Society · Physics 2013-09-11 Taisei Kaizoji

In this paper consensus in second-order multi-agent systems with a non-periodic sampled-data exchange among agents is investigated. The sampling is random with bounded inter-sampling intervals. It is assumed that each agent has exact…

Systems and Control · Computer Science 2014-09-09 Mehran Zareh , Dimos V. Dimarogonas , Mauro Franceschelli , Karl Henrik Johansson , Carla Seatzu

We use random walks to simulate the fluid limit of two coupled diffusive limit order books to model correlation emergence. The model implements the arrival, cancellation and diffusion of orders coupled by a pairs trader profiting from the…

Trading and Market Microstructure · Quantitative Finance 2024-08-07 Dominic Bauer , Derick Diana , Tim Gebbie

We extend Kirman's model by introducing variable event time scale. The proposed flexible time scale is equivalent to the variable trading activity observed in financial markets. Stochastic version of the extended Kirman's agent based model…

Statistical Finance · Quantitative Finance 2011-12-23 Aleksejus Kononovicius , Vygintas Gontis

In this paper, we study a model reduction technique for leader-follower networked multi-agent systems defined on weighted, undirected graphs with arbitrary linear multivariable agent dynamics. In the network graph of this network, nodes…

Optimization and Control · Mathematics 2016-10-11 Hidde-Jan Jongsma , Petar Mlinarić , Sara Grundel , Peter Benner , Harry L. Trentelman

We study how long-lived, rational agents learn in a social network. In every period, after observing the past actions of his neighbors, each agent receives a private signal, and chooses an action whose payoff depends only on the state.…

Theoretical Economics · Economics 2024-07-22 Wanying Huang , Philipp Strack , Omer Tamuz

Effectively capturing the joint distribution of all agents in a scene is relevant for predicting the true evolution of the scene and in turn providing more accurate information to the decision processes of autonomous vehicles. While new…

Robotics · Computer Science 2026-01-28 Anna Mészáros , Javier Alonso-Mora , Jens Kober

Online information is increasingly linked to real-world instability, especially as automated accounts and LLM-based agents help spread and amplify news. In this work, we study how information spreads on networks of Large Language Models…

Social and Information Networks · Computer Science 2026-03-02 Moyi Tian , George Mohler , P. Jeffrey Brantingham , Nancy Rodríguez

The agent-based model of stock price dynamics on a directed evolving complex network is suggested and studied by direct simulation. The stationary regime is maintained as a result of the balance between the extremal dynamics, adaptivity of…

Physics and Society · Physics 2009-11-13 D. Horvath , Z. Kuscsik

Given a connected region in two-dimensional space where events of a certain kind occur according to a certain time-varying density, we consider the problem of setting up a network of autonomous mobile agents to detect the occurrence of…

Multiagent Systems · Computer Science 2016-07-05 Rodrigo R. Esch , Fábio Protti , Valmir C. Barbosa