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Universal power laws have been scrutinised in physics and beyond, and a long-standing debate exists in econophysics regarding the strict universality of the nonlinear price impact, commonly referred to as the square-root law (SRL). The SRL…

Trading and Market Microstructure · Quantitative Finance 2025-12-16 Yuki Sato , Kiyoshi Kanazawa

The total number of patents produced by a country (or the number of patents produced per capita) is often used as an indicator for innovation. Here we present evidence that the distribution of patents amongst applicants within many OECD…

Physics and Society · Physics 2015-06-04 D. R. J. O'Neale , S. C. Hendy

We propose a series of simple models for the microstructure of a double auction market without intermediaries. We specialize to those markets, such interdealer broker markets, which are dominated by professional traders, who trade mainly…

Statistical Mechanics · Physics 2008-12-02 David Eliezer , Ian I. Kogan

Power law distributions have been found in many natural and social phenomena, and more recently in the source code and run-time characteristics of Object-Oriented (OO) systems. A power law implies that small values are extremely common,…

Software Engineering · Computer Science 2007-05-23 Richard Wheeldon , Steve Counsell

We analyze the sequence of time intervals between consecutive stock trades of thirty companies representing eight sectors of the U. S. economy over a period of four years. For all companies we find that: (i) the probability density function…

Statistical Mechanics · Physics 2009-11-10 Plamen Ch. Ivanov , Ainslie Yuen , Boris Podobnik , Youngki Lee

The Japanese shareholding network existing at the end of March 2002 is studied empirically. The network is constructed from 2,303 listed companies and 53 non-listed financial institutions. We consider this network as a directed graph by…

Physics and Society · Physics 2009-11-11 Wataru Souma , Yoshi Fujiwara , Hideaki Aoyama

We propose a new set of stylized facts quantifying the structure of financial markets. The key idea is to study the combined structure of both investment strategies and prices in order to open a qualitatively new level of understanding of…

Statistical Finance · Quantitative Finance 2015-03-19 Wei-Xing Zhou , Guo-Hua Mu , Wei Chen , Didier Sornette

The importance of the power law has been well realized in econophysics over the last decade. For instance, the distribution of the rate of stock price variation and of personal assets show the power law. While these results reveal the…

Physics and Society · Physics 2008-12-10 A. Watanabe , N. Uchida , N. Kikuchi

We statistically investigate the distribution of share price and the distributions of three common financial indicators using data from approximately 8,000 companies publicly listed worldwide for the period 2004-2013. We find that the…

Economics · Quantitative Finance 2017-02-02 Taisei Kaizoji , Michiko Miyano

We quantitatively investigate the ideas behind the often-expressed adage `it takes volume to move stock prices', and study the statistical properties of the number of shares traded $Q_{\Delta t}$ for a given stock in a fixed time interval…

Statistical Mechanics · Physics 2009-10-31 Parameswaran Gopikrishnan , Vasiliki Plerou , Xavier Gabaix , H. Eugene Stanley

This paper investigates the rank distribution, cumulative probability, and probability density of price returns for the stocks traded in the KSE and the KOSDAQ market. This research demonstrates that the rank distribution is consistent…

Statistical Mechanics · Physics 2008-12-02 Kyungsik Kim , S. -M. Yoon , C. Christopher Lee , K. H. Chang

A methodology is developed to identify, as units of study, each decrease in the value of a stock from a given maximum price level. A critical level in the amount of price declines is found to separate a segment operating under a random walk…

Statistical Finance · Quantitative Finance 2017-03-28 Leopoldo Sánchez-Cantú , Carlos Arturo Soto-Campos , Andriy Kryvko

We address the question of the growth of firm size. To this end, we analyze the Compustat data base comprising all publicly-traded United States manufacturing firms within the years 1974-1993. We find that the distribution of firm sizes…

This paper explores when the financial market lost the price formation function in prewar Japan in the sense of Fama's (1970) semi-strong form market efficiency using a new dataset. We particularly focus on the relationship between the…

Statistical Finance · Quantitative Finance 2021-06-04 Kenichi Hirayama , Akihiko Noda

Both buyers and sellers face uncertainty in real estate transactions in about when to time a transaction and at what cost. Both buyers and sellers make decisions without knowing the present and future state of the large and dynamic real…

Applications · Statistics 2022-01-12 Yuanyuan Zha , Susan T. Parker , James J. Foster , Vadim Sokolov

In order to study the phenomenon in detail that income distribution follows Pareto law, we analyze the database of high income companies in Japan. We find a quantitative relation between the average capital of the companies and the Pareto…

Other Condensed Matter · Physics 2009-11-10 Atushi Ishikawa

We investigate the waiting-time distribution of the absolute return in the Korean stock-market index KOSPI. We define the waiting time as a time interval during which the normalized absolute return remains continuously below a threshold…

Physics and Society · Physics 2008-12-02 Jae Woo Lee , Kyoung Eun Lee , Per Arne Rikvold

This review presents the set of electricity price models proposed in the literature since the opening of power markets. We focus on price models applied to financial pricing and risk management. We classify these models according to their…

Mathematical Finance · Quantitative Finance 2021-07-30 Thomas Deschatre , Olivier Féron , Pierre Gruet

Consensus about the universality of the power law feature in complex networks is experiencing profound challenges. To shine fresh light on this controversy, we propose a generic theoretical framework in order to examine the power law…

Physics and Society · Physics 2021-05-24 Xiaojun Zhang , Zheng He , Liwei Zhang , Lez Rayman-Bacchus , Yue Xiao , Shuhui Shen

In the preceding paper we presented empirical results describing the growth of publicly-traded United States manufacturing firms within the years 1974--1993. Our results suggest that the data can be described by a scaling approach. Here, we…