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We review some statistical many-agent models of economic and social systems inspired by microscopic molecular models and discuss their stochastic interpretation. We apply these models to wealth exchange in economics and study how the…

Physics and Society · Physics 2013-03-19 Marco Patriarca , Anirban Chakraborti , Els Heinsalu , Guido Germano

In complex financial systems, the sector structure and volatility clustering are respectively important features of the spatial and temporal correlations. However, the microscopic generation mechanism of the sector structure is not yet…

General Finance · Quantitative Finance 2015-04-09 Jun-Jie Chen , Lei Tan , Bo Zheng

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

In order to figure out and to forecast the emergence phenomena of social systems, we propose several probabilistic models for the analysis of financial markets, especially around a crisis. We first attempt to visualize the collective…

Statistical Finance · Quantitative Finance 2015-06-17 Takero Ibuki , Shunsuke Higano , Sei Suzuki , Jun-ichi Inoue , Anirban Chakraborti

We study a model for a statistical network formed by interactions between its nodes and links. Each node can be in one of two states (Ising spin up or down) and the node-link interaction facilitates linking between the like nodes. For high…

Statistical Mechanics · Physics 2009-11-11 A. E. Allahverdyan , K. G. Petrosyan

This paper proposes a simple model to capture the complexity of multi-layer systems where their constituent layers affect, are affected by, each other. The physical layer is a circuit composed by a power source and resistors in parallel.…

Multiagent Systems · Computer Science 2016-02-09 Florian Kühnlenz , Pedro H. J. Nardelli

We investigate the volatility return intervals in the NYSE and FOREX markets. We explain previous empirical findings using a model based on the interacting agent hypothesis instead of the widely-used efficient market hypothesis. We derive…

General Finance · Quantitative Finance 2016-10-26 Vygintas Gontis , Shlomo Havlin , Aleksejus Kononovicius , Boris Podobnik , H. Eugene Stanley

In various economic environments, people observe other people with whom they strategically interact. We can model such information-sharing relations as an information network, and the strategic interactions as a game on the network. When…

Methodology · Statistics 2019-11-27 Nathan Canen , Jacob Schwartz , Kyungchul Song

A network of agents interacting both with competitive and/or cooperative mechanisms is modeled by using fermionic ladder operators. The time evolution of the network is assumed to be governed by a Hermitian time-independent Hamiltonian…

Physics and Society · Physics 2025-05-30 G. Giunta , M. Gorgone , F. Oliveri

Factor models characterize the joint behavior of large sets of financial assets through a smaller number of underlying drivers. We develop a network-based framework in which factors emerge naturally from the structure of interactions among…

Computational Finance · Quantitative Finance 2026-04-15 Jose Negrete , Jaime Joel Ramos

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

In this work we review some recent development in the mathematical modelling of quantitative sociology by means of statistical mechanics. After a short pedagogical introduction to static and dynamic properties of many body systems, we…

Physics and Society · Physics 2009-10-15 Elena Agliari , Adriano Barra , Raffaella Burioni , Pierluigi Contucci

We introduce and solve a model that mimics the herding effect in financial markets when groups of agents share information. The number of agents in the model is growing and at each time step either (i) with probability $p$ an incoming agent…

Disordered Systems and Neural Networks · Physics 2009-11-07 G. J. Rodgers , Dafang Zheng

Social movements, neurons in the brain or even industrial suppliers are best described by agents evolving on networks with basic interaction rules. In these real systems, the connectivity between agents corresponds to the a critical state…

Physics and Society · Physics 2007-05-23 Philippe Curty

A stochastic epidemic model is defined in which each individual belongs to a household, a secondary grouping (typically school or workplace) and also the community as a whole. Moreover, infectious contacts take place in these three settings…

Applications · Statistics 2009-08-17 Tom Britton , Theodore Kypraios , Philip O'Neill

We demonstrate using multi-layered networks, the existence of an empirical linkage between the dynamics of the financial network constructed from the market indices and the macroeconomic networks constructed from macroeconomic variables…

General Economics · Economics 2019-03-18 Kiran Sharma , Anindya S. Chakrabarti , Anirban Chakraborti

Macro-economic models describe the dynamics of economic quantities. The estimations and forecasts produced by such models play a substantial role for financial and political decisions. In this contribution we describe an approach based on…

Neural and Evolutionary Computing · Computer Science 2013-09-24 Gabriel Kronberger , Stefan Fink , Michael Kommenda , Michael Affenzeller

Dynamical systems across many disciplines are modeled as interacting particles or agents, with interaction rules that depend on a very small number of variables (e.g. pairwise distances, pairwise differences of phases, etc...), functions of…

Machine Learning · Computer Science 2022-08-05 Jinchao Feng , Mauro Maggioni , Patrick Martin , Ming Zhong

Understanding how opinions spread through a community or how consensus emerges in noisy environments can have a significant impact on our comprehension of social relations among individuals. In this work a model for the dynamics of opinion…

Physics and Society · Physics 2009-11-13 V. Schwammle , M. C. Gonzalez , A. A. Moreira , J. S. Jr. Andrade , H. J. Herrmann

We consider a network of agents. Associated with each agent are her covariate and outcome. Agents influence each other's outcomes according to a certain connection/influence structure. A subset of the agents participate on a platform, and…

Social and Information Networks · Computer Science 2022-01-28 Baris Ata , Alexandre Belloni , Ozan Candogan