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We focus on the influence of external sources of information upon financial markets. In particular, we develop a stochastic agent-based market model characterized by a certain herding behavior as well as allowing traders to be influenced by…

General Finance · Quantitative Finance 2015-07-28 Adrián Carro , Raúl Toral , Maxi San Miguel

Recent advancements in Large Language Models (LLMs) have enabled the emergence of multi-agent systems where LLMs interact, collaborate, and make decisions in shared environments. While individual model behavior has been extensively studied,…

Multiagent Systems · Computer Science 2025-05-29 Young-Min Cho , Sharath Chandra Guntuku , Lyle Ungar

We present a detailed study of the statistical properties of an Agent Based Model and of its generalization to the multiplicative dynamics. The aim of the model is to consider the minimal elements for the understanding of the origin of the…

Trading and Market Microstructure · Quantitative Finance 2009-11-13 V. Alfi , M. Cristelli , L. Pietronero , A. Zaccaria

The rich-get-richer mechanism (agents increase their ``wealth'' randomly at a rate proportional to their holdings) is often invoked to explain the Pareto power-law distribution observed in many physical situations, such as the degree…

General Finance · Quantitative Finance 2008-12-02 James P. Bagrow , Jie Sun , Daniel ben-Avraham

Recently several authors have proposed stochastic evolutionary models for the growth of complex networks that give rise to power-law distributions. These models are based on the notion of preferential attachment leading to the ``rich get…

Soft Condensed Matter · Physics 2007-05-23 Trevor Fenner , Mark Levene , George Loizou

We study a system in which N agents have to decide between two strategies \theta_i (i \in 1... N), for defection or cooperation, when interacting with other n agents (either spatial neighbors or randomly chosen ones). After each round, they…

Physics and Society · Physics 2012-11-07 Frank Schweitzer , Pavlin Mavrodiev , Claudio J. Tessone

Different agents need to make a prediction. They observe identical data, but have different models: they predict using different explanatory variables. We study which agent believes they have the best predictive ability -- as measured by…

Theoretical Economics · Economics 2023-02-01 Jose Luis Montiel Olea , Pietro Ortoleva , Mallesh M Pai , Andrea Prat

Recently several authors have proposed stochastic models of the growth of the Web graph that give rise to power-law distributions. These models are based on the notion of preferential attachment leading to the ``rich get richer''…

Disordered Systems and Neural Networks · Physics 2007-05-23 Mark Levene , Trevor Fenner , George Loizou , Richard Wheeldon

We propose a Statistical-Mechanics inspired framework for modeling economic systems. Each agent composing the economic system is characterized by a few variables of distinct nature (e.g. saving ratio, expectations, etc.). The agents…

Statistical Mechanics · Physics 2007-05-23 Tom Erez , Martin Hohnisch , Sorin Solomon

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,…

Physics and Society · Physics 2008-12-02 Wei-Xing Zhou , Didier Sornette

The dynamics of competing opinions in social network play an important role in society, with many applications in diverse social contexts as consensus, elections, morality and so on. Here we study a model of interacting agents connected in…

Physics and Society · Physics 2022-09-29 Antonio Mihara , Anderson A. Ferreira , André C. R. Martins , Fernando F. Ferreira

Observational learning often involves congestion: an agent gets lower payoff from an action when more predecessors have taken that action. This preference to act differently from previous agents may paradoxically increase all but one…

Theoretical Economics · Economics 2019-04-02 Sander Heinsalu

We study the role of imitation within a model of economics with adaptive agents. The basic ingredients are those of the Minority Game. We add the possibility of local information exchange and imitation of the neighbour's strategy. Imitators…

Statistical Mechanics · Physics 2009-11-07 Frantisek Slanina

Interaction within small groups can often be represented as a sequence of events, where each event involves a sender and a recipient. Recent methods for modeling network data in continuous time model the rate at which individuals interact…

Methodology · Statistics 2012-08-01 Christopher DuBois , Carter T. Butts , Daniel McFarland , Padhraic Smyth

This paper considers the problem of offering a scarce object with a common unobserved quality to strategic agents in a priority queue. Each agent has a private signal over the quality of the object and observes the decisions made by other…

Computer Science and Game Theory · Computer Science 2024-05-01 Itai Ashlagi , Jamie Kang , Moran Koren , Faidra Monachou

Many social and biological systems are characterized by enduring hierarchies, including those organized around prestige in academia, dominance in animal groups, and desirability in online dating. Despite their ubiquity, the general…

Social and Information Networks · Computer Science 2022-04-27 Mari Kawakatsu , Philip S. Chodrow , Nicole Eikmeier , Daniel B. Larremore

A cluster theory based mathematical model was developed and used to simulate the dynamics of a system composed of a large number of interacting agents-clusters with different size. The case of a system formed by a constant total number of…

Physics and Society · Physics 2007-05-23 Vitalie Eremeev , Ion Rasca , Florentin Paladi

The well-known Ising model used in statistical physics was adapted to a social dynamics context to simulate the adoption of a technological innovation. The model explicitly combines (a) an individual's perception of the advantages of an…

Physics and Society · Physics 2015-05-20 Carlos E. Laciana , Santiago L. Rovere

Following a long tradition of physicists who have noticed that the Ising model provides a general background to build realistic models of social interactions, we study a model of financial price dynamics resulting from the collective…

Statistical Mechanics · Physics 2008-12-02 Didier Sornette , Wei-Xing Zhou

We provide a framework for determining the centralities of agents in a broad family of random networks. Current understanding of network centrality is largely restricted to deterministic settings, but practitioners frequently use random…

Social and Information Networks · Computer Science 2022-02-07 Krishna Dasaratha
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