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This paper is about how we study statistical methods. As an example, it uses the random regressions model, in which the intercept and slope of cluster-specific regression lines are modeled as a bivariate random effect. Maximizing this…

Other Statistics · Statistics 2019-05-22 James S. Hodges

Choosing the technique that is the best at forecasting your data, is a problem that arises in any forecasting application. Decades of research have resulted into an enormous amount of forecasting methods that stem from statistics,…

Econometrics · Economics 2020-02-05 Tine Van Calster , Filip Van den Bossche , Bart Baesens , Wilfried Lemahieu

In this article three models of firms interaction on the market are described. One of these models is described by using a differential equation and by Lotka-Volterra model, where the equation has a different form. Also, there are models of…

General Finance · Quantitative Finance 2019-05-17 Oleg Malafeyev , Eduard Abramyan , Andrey Shulga

Critical, or scale independent, systems are so ubiquitous, that gaining theoretical insights on their nature and properties has many direct repercussions in social and natural sciences. In this report, we start from the simplest possible…

Physics and Society · Physics 2012-11-07 Laurent Hébert-Dufresne , Antoine Allard , Louis J. Dubé

Based on empirical evidences and previous studies, we introduce and mathematically study a perception-driven model for the dynamics of buyer populations in markets of perishable goods. Buyer behaviours are driven partly by some loyalty to…

Theoretical Economics · Economics 2024-07-23 Ali Ellouze , Bastien Fernandez

In order to investigate the dependence on lattice size of several observables in percolation, the Hoshen-Kopelman algorithm was modified so that growing lattices could be simulated. By this way, when simulating a lattice of size L, lattices…

Statistical Mechanics · Physics 2009-11-11 Daniel Tiggemann

The rate of adoption of new information depends on reinforcement from multiple sources in a way that often cannot be described by simple contagion processes. In such cases, contagion is said to be complex. Complex contagion happens in the…

Physics and Society · Physics 2019-06-21 Vítor V. Vasconcelos , Simon A. Levin , Flávio L. Pinheiro

In online internet advertising, machine learning models are widely used to compute the likelihood of a user engaging with product related advertisements. However, the performance of traditional machine learning models is often impacted due…

Information Retrieval · Computer Science 2018-06-22 Marcelo Tallis , Pranjul Yadav

We consider a monopolistic seller in a market that may be segmented. The surplus of each consumer in a segment depends on the price that the seller optimally charges, which depends on the set of consumers in the segment. We study which…

Theoretical Economics · Economics 2022-10-25 Nima Haghpanah , Ron Siegel

Network percolation has recently been proposed as a method to characterize the global structure of an urban system form the bottom-up. This paper proposes to extend urban network percolation in a multi-dimensional way, to take into account…

Physics and Society · Physics 2019-03-19 Juste Raimbault

We examine the effects of introducing a wall or edge into a directed percolation process. Scaling ansatzes are presented for the density and survival probability of a cluster in these geometries, and we make the connection to surface…

Statistical Mechanics · Physics 2009-10-30 Per Frojdh , Martin Howard , Kent B. Lauritsen

We study a class of heterogeneous agent-based models which are based on a basic set of principles, and the most fundamental operations of an economic system: trade and product transformations. A basic guiding principle is scale invariance,…

Trading and Market Microstructure · Quantitative Finance 2009-02-24 Samuel E. Vazquez

The correctness of Harrods model in the differential form is studied. The inadequacy of exponential growth of economy is shown; an alternative result is obtained. By example of Phillips model, an approach to correction of macroeconomic…

General Finance · Quantitative Finance 2009-11-30 S. I. Chernyshov , A. V. Voronin , S. A. Razumovsky

In this work, the spread of crime dynamics in the US is analyzed from a mathematical scope, an epidemiological model is established, including five compartments: Susceptible (S), Latent 1 (E1), Latent 2 (E2), Incarcerated (I), and Recovered…

Physics and Society · Physics 2024-10-03 Michael Aguadze , Ana Vivas , Sujan Pant , Kubilay Dagtoros

Lucas and Moll have proposed a system of forward-backward partial differential equations that model knowledge diffusion and economic growth. It arises from a microscopic model of learning for a mean-field type interacting system of…

Analysis of PDEs · Mathematics 2021-09-22 George Papanicolaou , Lenya Ryzhik , Katerina Velcheva

We introduce a simple lattice model in which percolation is constructed on top of critical percolation clusters, and show that it can be repeated recursively any number $n$ of generations. In two dimensions, we determine the percolation…

Statistical Mechanics · Physics 2015-08-05 Youjin Deng , Jesper Lykke Jacobsen , Xuan-Wen Liu

The problem of market clearing is to set a price for an item such that quantity demanded equals quantity supplied. In this work, we cast the problem of predicting clearing prices into a learning framework and use the resulting models to…

Machine Learning · Computer Science 2019-06-25 Weiran Shen , Sébastien Lahaie , Renato Paes Leme

Statistical mechanical systems at and near their points of phase transition are expected to exhibit rich, fractal-like behaviour that is independent of the small-scale details of the system but depends strongly on the dimension in which the…

Mathematical Physics · Physics 2025-10-07 Tom Hutchcroft

Mandatory emission trading schemes are being established around the world. Participants of such market schemes are always exposed to risks. This leads to the creation of an accompanying market for emission-linked derivatives. To evaluate…

Pricing of Securities · Quantitative Finance 2010-01-25 K. Borovkov , G. Decrouez , J. Hinz

We study how the dynamics of a drying front propagating through a porous medium are affected by small-scale correlations in material properties. For this, we first present drying experiments in micro-fluidic micro-models of porous media.…

Soft Condensed Matter · Physics 2018-12-26 Soumyajyoti Biswas , Paolo Fantinel , Oshri Borgman , Ran Holtzman , Lucas Goehring