Related papers: Emergence of two-phase behavior in markets through…
Financial markets are subject to long periods of polarized behavior, such as bull-market or bear-market phases, in which the vast majority of market participants seem to almost exclusively choose one action (between buying or selling) over…
Many empirical networks are intrinsically pluralistic, with interactions occurring within groups of arbitrary agents. Then the agent in the network can be influenced by types of neighbors, common examples include similarity, opposition, and…
Two-sided matching markets have long existed to pair agents in the absence of regulated exchanges. A common example is school choice, where a matching mechanism uses student and school preferences to assign students to schools. In such…
We study how fads emerge under social learning in a changing environment. We consider a simple sequential social learning model where rational agents arrive in order, each acting only once, and the underlying unknown state constantly…
Individual choices are either based on personal experience or on information provided by peers. The latter case, causes individuals to conform to the majority in their neighborhood. Such herding behavior may be very efficient in aggregating…
The two phase behavior in financial markets actually means the bifurcation phenomenon, which represents the change of the conditional probability from an unimodal to a bimodal distribution. In this paper, the bifurcation phenomenon in…
Agent-based models help explain stock price dynamics as emergent phenomena driven by interacting investors. In this modeling tradition, investor behavior has typically been captured by two distinct mechanisms -- learning and heterogeneous…
Agent-based models provide a constructive approach to studying emergent dynamics in life-like systems composed of interacting, adaptive agents. Financial markets serve as a canonical example of such systems, where collective price dynamics…
We define an opinion formation model of agents in a 1d ring, where the opinion of an agent evolves due to its interactions with close neighbors and due to its either positive or negative attitude toward the overall mood of all the other…
A simple model of opinion formation dynamics in which binary-state agents make up their opinions due to the influence of agents in a local neighborhood is studied using different network topologies. Each agent uses two different strategies,…
We study a neuro-inspired model that mimics a discussion (or information dissemination) process in a network of agents. During their interaction, agents redistribute activity and network weights, resulting in emergence of leader(s). The…
Consider the following process on a network: Each agent initially holds either opinion blue or red; then, in each round, each agent looks at two random neighbors and, if the two have the same opinion, the agent adopts it. This process is…
We present a simple agent-based model to study the development of a bubble and the consequential crash and investigate how their proximate triggering factor might relate to their fundamental mechanism, and vice versa. Our agents invest…
We study binary opinion dynamics in a fully connected network of interacting agents. The agents are assumed to interact according to one of the following rules: (1) Voter rule: An updating agent simply copies the opinion of another randomly…
We study a generic model for self-referential behaviour in financial markets, where agents attempt to use some (possibly fictitious) causal correlations between a certain quantitative information and the price itself. This correlation is…
The question how social norms can emerge from microscopic interactions between individuals is a key problem in social sciences to explain collective behavior. In this paper we propose an agent-based model to show that randomly distributed…
In this paper I present several algorithmic techniques for improving the decision process of multiple types of agents behaving in environments where their interests are in conflict. The interactions between the agents are modelled by using…
A researcher observes a finite sequence of choices made by multiple agents in a binary-state environment. Agents maximize expected utilities that depend on their chosen alternative and the unknown underlying state. Agents learn about the…
A social system is considered whose agents choose between several alternatives of possible actions. The system is described by the fractions of agents preferring the corresponding alternatives. The agents interact with each other by…
We define and study a rather complex market model, inspired from the Santa Fe artificial market and the Minority Game. Agents have different strategies among which they can choose, according to their relative profitability, with the…