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We introduce a minimal Agent Based Model with two classes of agents, fundamentalists (stabilizing) and chartists (destabilizing) and we focus on the essential features which can generate the stylized facts. This leads to a detailed…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 V. Alfi , L. Pietronero , A. Zaccaria

A new approach for the description of phenomena of social aggregation is suggested. On the basis of psychological concepts (as for instance social norms and cultural coordinates), we deduce a general mechanism for the social aggregation in…

Physics and Society · Physics 2011-04-29 Daniele Vilone , Andrea Guazzini

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 study the collective behavior of interacting agents in a simple model of market economics originally introduced by N{\o}rrelykke and Bak. A general theoretical framework for interacting traders on an arbitrary network is presented, with…

General Finance · Quantitative Finance 2017-05-24 Avinash Chand Yadav , Kaustubh Manchanda , Ramakrishna Ramaswamy

Methods for learning optimal policies in autonomous agents often assume that the way the domain is conceptualised---its possible states and actions and their causal structure---is known in advance and does not change during learning. This…

Artificial Intelligence · Computer Science 2018-01-11 Craig Innes , Alex Lascarides , Stefano V Albrecht , Subramanian Ramamoorthy , Benjamin Rosman

Understanding the forces governing human behavior and social dynamics is a challenging problem. Individuals' decisions and actions are affected by interlaced factors, such as physical location, homophily, and social ties. In this paper, we…

Social and Information Networks · Computer Science 2018-01-30 Luca Luceri , Alberto Vancheri , Torsten Braun , Silvia Giordano

We use a model of opinion formation to study the consequences of some mechanisms attempting to enforce the right behaviour in a society. We start from a model where the possible choices are not equivalent (such is the case when the agents…

Physics and Society · Physics 2012-12-18 M. F. Laguna , G. Abramson , J. R. Iglesias

When the full stock of a new product is quickly sold in a few days or weeks, one has the impression that new technologies develop and conquer the market in a very easy way. This may be true for some new technologies, for example the cell…

Physics and Society · Physics 2012-08-14 Sebastian Goncalves , M. F. Laguna , J. R. Iglesias

Empirical evidence suggests that even the most competitive markets are not strictly efficient. Price histories can be used to predict near future returns with a probability better than random chance. Many markets can be considered as {\it…

Statistical Mechanics · Physics 2009-10-31 Yi-Cheng Zhang

Flocking is a coordinated collective behavior that results from local sensing between individual agents that have a tendency to orient towards each other. Flocking is common among animal groups and might also be useful in robotic swarms. In…

Multiagent Systems · Computer Science 2018-04-25 Daniel Y. Fu , Emily S. Wang , Peter M. Krafft , Barbara J. Grosz

Social interactions and personal tastes shape our consumption behavior of cultural products. In this study, we present a computational model of a cultural market and we aim to analyze the behavior of the consumer population as an emergent…

General Finance · Quantitative Finance 2008-12-02 Amac Herdagdelen , Haluk Bingol

Models that provide insight into how extreme positions regarding any social phenomenon may spread in a society or at the global scale are of great current interest. A realistic model must account for the fact that globalization and internet…

Physics and Society · Physics 2007-05-23 Dietrich Stauffer , Muhammad Sahimi

We use the Minority Game and some of its variants to show how efficiency depends on learning in models of agents competing for limited resources. Exact results from statistical physics give a clear understanding of the phenomenology, and…

Condensed Matter · Physics 2007-05-23 Damien Challet

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

Problem solving (e.g., drug design, traffic engineering, software development) by task forces represents a substantial portion of the economy of developed countries. Here we use an agent-based model of cooperative problem solving systems to…

Multiagent Systems · Computer Science 2016-02-23 José F. Fontanari

In complex systems, many different parts interact in non-obvious ways. Traditional research focuses on a few or a single aspect of the problem so as to analyze it with the tools available. To get a better insight of phenomena that emerge…

Multiagent Systems · Computer Science 2015-04-03 Klaus Jaffe

This paper is based on the premise that economic growth is driven by an interplay between innovation and imitation in an economy composed of interacting firms operating in a stochastic environment. A novel approach to modeling imitation is…

Pattern Formation and Solitons · Physics 2019-08-15 Olivier Gallay , Max-Olivier Hongler , Fariba Hashemi

Fashion is a multi-billion dollar industry with social and economic implications worldwide. To gain popularity, brands want to be represented by the top popular models. As new faces are selected using stringent (and often criticized)…

Computers and Society · Computer Science 2017-03-07 Jaehyuk Park , Giovanni Luca Ciampaglia , Emilio Ferrara

Predicting when an individual will adopt a new behavior is an important problem in application domains such as marketing and public health. This paper examines the perfor- mance of a wide variety of social network based measurements…

Social and Information Networks · Computer Science 2016-07-26 Nikhil Kumar , Ruocheng Guo , Ashkan Aleali , Paulo Shakarian

We have used agent-based modeling as our numerical method to artificially simulate a dynamic real economy where agents are rational maximizers of an objective function of Cobb-Douglas type. The economy is characterised by heterogeneous…

Theoretical Economics · Economics 2024-01-17 Subhamon Supantha , Naresh Kumar Sharma