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A 24-hour exchange market was created on the Web to trade political futures contracts using fictitious money. In this online market, a political futures contract is a futures contract which matures on the election day with a liquidation…

Physics and Society · Physics 2007-05-23 Sun-Chong Wang , Sai-Ping Li , Chung-Ching Tai , Shu-Heng Chen

This study introduces a method for simulating quantum systems using electrical networks. Our approach leverages a generalized similarity transformation, which connects different Hamiltonians, enabling well-defined paths for quantum system…

Quantum Physics · Physics 2024-06-13 M. Caruso

The liberalization of electricity markets and the development of renewable energy sources has led to new challenges for decision makers. These challenges are accompanied by an increasing uncertainty about future electricity price movements.…

Applications · Statistics 2018-09-12 Florian Ziel , Rick Steinert

Motivated by the problem of market power in electricity markets, we introduced in previous works a mechanism for simplified markets of two agents with linear cost. In standard procurement auctions, the market power resulting from the…

Theoretical Economics · Economics 2019-07-25 Benjamin Heymann , Alejandro Jofré

We study the distributions of money in a simple closed economic system for different types of monetary transactions. We know that for arbitrary and random sharing but locally conserving money transactions, the money distribution goes to the…

Statistical Mechanics · Physics 2009-11-07 Anirban Chakraborti

Involving effects of media, opinion leader and other agents on the opinion of individuals of market society, a trader based model is developed and utilized to simulate price via supply and demand. Pronounced effects are considered with…

Physics and Society · Physics 2009-11-11 Caglar Tuncay

In electricity markets, futures contracts typically function as a swap since they deliver the underlying over a period of time. In this paper, we introduce a market price for the delivery periods of electricity swaps, thereby opening an…

Pricing of Securities · Quantitative Finance 2022-06-13 Annika Kemper , Maren D. Schmeck , Anna Kh. Balci

Based on the analog between the stochastic dynamics and quantum harmonic oscillator, we propose a market force driving model to generalize the Black-Scholes model in finance market. We give new schemes of option pricing, in which we can…

Risk Management · Quantitative Finance 2026-01-05 Pengpeng Li , Shi-Dong Liang

A unified approach is proposed to describe the statistics of the short time dynamics of multiscale complex systems. The probability density function of the relevant time series (signal) is represented as a statistical superposition of a…

Statistical Mechanics · Physics 2019-05-06 A. M. S. Macedo , I. R. R. Gonzales , D. S. P. Salazar , G. L. Vasconcelos

Financial markets can be seen as complex systems in non-equilibrium steady state, one of whose most important properties is the distribution of price fluctuations. Recently, there have been assertions that this distribution is qualitatively…

Physics and Society · Physics 2008-12-02 Raj Kumar Pan , Sitabhra Sinha

This working paper presents a comprehensive study on the development and analysis of various electricity market models, focusing on continuous, discrete, and fractional-order approaches. The continuous model captures the ongoing…

Optimization and Control · Mathematics 2024-07-29 Ioannis Dassios

Based on geometrical considerations, we propose a new oscillator for technical market analysis, the tube oscillator. This oscillator measures the trending behavior of a fixed market instrument based on its past history. It is shown in an…

Trading and Market Microstructure · Quantitative Finance 2024-07-12 Dragoljub Katic , Stefan Richter

In this paper we discuss the problem of the estimation of extreme event occurrence probability for data drawn from some multifractal process. We also study the heavy (power-law) tail behavior of probability density function associated with…

Statistical Mechanics · Physics 2009-11-11 Jean-Francois Muzy , Emmanuel Bacry , Alexey Kozhemyak

A representative investor generates realistic and complex security price paths by following this trading strategy: if, a few ticks ago, the market asset had two consecutive upticks or two consecutive downticks, then sell, and otherwise buy.…

Trading and Market Microstructure · Quantitative Finance 2016-09-08 Philip Maymin

We apply the potential force estimation method to artificial time series of market price produced by a deterministic dealer model. We find that dealers' feedback of linear prediction of market price based on the latest mean price changes…

General Finance · Quantitative Finance 2009-11-13 Kenta Yamada , Hideki Takayasu , Misako Takayasu

Identifying behavior that is relatively invariant under different conditions is a challenging task in far-from-equilibrium complex systems. As an example of how the existence of a semi-invariant signature can be masked by the heterogeneity…

Statistical Finance · Quantitative Finance 2018-06-22 Abhijit Chakraborty , Soumya Easwaran , Sitabhra Sinha

We consider a market where many agents trade many different types of products with each other. We model development of collective modes in this market, and quantify these by fluctuations that scale with time with a Hurst exponent of about…

Condensed Matter · Physics 2009-10-31 Raul Donangelo , Alex Hansen , Kim Sneppen , Sergio R. Souza

We introduce and study a simple model of a limit order-driven market. Traders in this model can either trade at the market price or place a limit order, i.e. an instruction to buy (sell) a certain amount of the stock if its price falls…

Statistical Mechanics · Physics 2009-10-31 Sergei Maslov

The European Power Exchange has introduced day-ahead auctions and continuous trading spot markets to facilitate the insertion of renewable electricity. These markets are designed to balance excess or lack of power in short time periods,…

Statistical Finance · Quantitative Finance 2021-12-08 Leonardo Rydin Gorjão , Dirk Witthaut , Pedro G. Lind , Wided Medjroubi

We present a model of power law inflation generated by variation of the strong coupling constant. We then extend the model to two varying coupling constants which leads to a potential consisting of a linear combination of exponential terms.…

High Energy Physics - Phenomenology · Physics 2016-09-21 M. AlHallak , N. Chamoun
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