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Phenomena which involves collective choice of many agents who are interacting with each other and choosing one of several alternatives, based on the limited information available to them, frequently show switching between two distinct…
We study overpricing in a repeated game between two representative agents: a market maker, who controls market liquidity, and a market taker, who chooses trade quantities. Market prices evolve through the endogenous price impact of trades…
In this paper, we tackle the problem of innovation spreading from a modeling point of view. We consider a networked system of individuals, with a competition between two groups. We show its relation to the innovation spreading issues. We…
We use generating functional analysis to study minority-game type market models with generalized strategy valuation updates that control the psychology of agents' actions. The agents' choice between trend following and contrarian trading,…
We introduce and discuss kinetic models of opinion formation on social networks in which the distribution function depends on both the opinion and the connectivity of the agents. The opinion formation model is subsequently coupled with a…
A dynamic memory model is proposed in which an agent ``learns'' a new agent by means of recommendation. The agents can also ``remember'' and ``forget''. The memory size is decreased while the population size is kept constant. ``Fame''…
Agent-based models describing social interactions among individuals can help to better understand emerging macroscopic patterns in societies. One of the topics which is worth tackling is the formation of different kinds of hierarchies that…
We propose a model for the diffusion of several products competing in a common market based on the generalization of the Ising model of statiscal mechanics (Potts model). Using an agent based implementation, we analyze two problems: (i) a…
Agent-based modeling is a powerful simulation technique to understand the collective behavior and microscopic interaction in complex financial systems. Recently, the concept for determining the key parameters of the agent-based models from…
Deployed supervised machine learning models make predictions that interact with and influence the world. This phenomenon is called performative prediction by Perdomo et al. (ICML 2020). It is an ongoing challenge to understand the influence…
Groupthink occurs when everyone in a group starts thinking alike, as when people put unlimited faith in a leader. Avoiding this phenomenon is a ubiquitous challenge to problem-solving enterprises and typical countermeasures involve the…
Most people agree that human activities are consistent with physical laws. One may naturally think that sensible economic theories can be derived from physical laws and evolutionary principles. This is indeed the case. In this paper, we…
Linking the microscopic and macroscopic behavior is at the heart of many natural and social sciences. This apparent similarity conceals essential differences across disciplines: while physical particles are assumed to optimize the global…
This paper presents a model of capital accumulation for a large number of heterogenous producer-consumers in an exchange space in which interactions depend on agents' positions. Each agent is described by his production, consumption, stock…
We consider the problem of the evolution of a code within a structured population of agents. The agents try to maximise their information about their environment by acquiring information from the outputs of other agents in the population. A…
Threshold models of cascades in the social sciences and economics explain the spread of opinion and innovation due to social influence. In threshold cascade models, fads or innovations spread between agents as determined by their…
We consider in a market model the cooperative emergence of value due to a positive feedback between perception of needs and demand. Here we consider also a negative feedback from production of the traded products, and find that this…
An agent-based model for firms' dynamics is developed. The model consists of firm agents with identical characteristic parameters and a bank agent. Dynamics of those agents is described by their balance sheets. Each firm tries to maximize…
Functional technical performance usually follows an exponential dependence on time but the rate of change (the exponent) varies greatly among technological domains. This paper presents a simple model that provides an explanatory foundation…
This paper studies a stylized model of local interaction where agents choose from an ever increasing set of vertically ranked actions, e.g. technologies. The driving forces of the model are infrequent upward shifts (``updates''), followed…