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Real world markets display power-law features in variables such as price fluctuations in stocks. To further understand market behavior, we have conducted a series of market experiments on our web-based prediction market platform which…

Trading and Market Microstructure · Quantitative Finance 2010-02-05 Jie-Jun Tseng , Chih-Hao Lin , Chih-Ting Lin , Sun-Chong Wang , Sai-Ping Li

This article reviews a few basic features of systems of one-dimensional diffusions with rank-based characteristics. Such systems arise in particular in the modelling of financial markets , where they go by the name of Atlas models. We…

Probability · Mathematics 2017-05-24 Julien Reygner

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…

Statistical Finance · Quantitative Finance 2017-03-21 T. T. Chen , B. Zheng , Y. Li , X. F. Jiang

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…

Computers and Society · Computer Science 2025-11-12 Ryuji Hashimoto , Ryosuke Takata , Masahiro Suzuki , Yuki Tanaka , Kiyoshi Izumi

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

Different models of capital exchange among economic agents have been proposed recently trying to explain the emergence of Pareto's wealth power law distribution. One important factor to be considered is the existence of risk aversion. In…

Statistical Mechanics · Physics 2009-11-10 J. R. Iglesias , S. Goncalves , G. Abramson , J. L. Vega

We investigate an agent-based model for the emergence of corruption in public contracts. There are two types of agents: business people and public servants. Both business people and public servants can adopt two strategies: corrupt or…

Physics and Society · Physics 2023-04-06 Pablo Valverde , Jaime Fernandez , Edwin Buenaño , Juan Carlos González-Avella , Mario Cosenza

This paper outlines an agent-based model of a simple financial market in which a single asset is available for trade by three different types of traders. The model was first introduced in the PhD thesis of one of the authors, see reference…

Trading and Market Microstructure · Quantitative Finance 2019-01-17 Elena Green , Daniel M. Heffernan

We formulate and analyze a multi-agent model for the evolution of individual and systemic risk in which the local agents interact with each other through a central agent who, in turn, is influenced by the mean field of the local agents. The…

Mathematical Finance · Quantitative Finance 2015-08-19 Josselin Garnier , George Papanicolaou , Tzu-Wei Yang

A class of dynamic threshold models is proposed, for describing the upset of collective actions in social networks. The agents of the network have to decide whether to undertake a certain action or not. They make their decision by comparing…

Social and Information Networks · Computer Science 2016-05-23 Andrea Garulli , Antonio Giannitrapani

We study a simple continuous-time multi-agent system related to Krause's model of opinion dynamics: each agent holds a real value, and this value is continuously attracted by every other value differing from it by less than 1, with an…

Optimization and Control · Mathematics 2009-07-28 Vincent D. Blondel , Julien M. Hendrickx , John N. Tsitsiklis

This agent-based model contributes to a theory of corporate culture in which company performance and employees' behaviour result from the interaction between financial incentives, motivational factors and endogenous social norms. Employees'…

Theoretical Economics · Economics 2022-01-31 Michael Roos , Jessica Reale , Frederik Banning

We consider a class of generalized capital asset pricing models in continuous time with a finite number of agents and tradable securities. The securities may not be sufficient to span all sources of uncertainty. If the agents have…

General Finance · Quantitative Finance 2012-10-23 Ulrich Horst , Michael Kupper , Andrea Macrina , Christoph Mainberger

We consider a financial market model which consists of a financial asset and a large number of interacting agents classified into many types. Different types of agents are heterogeneous in their price expectations. Each agent can change its…

Probability · Mathematics 2008-12-02 Biao Wu

An agent-based model is proposed for analyzing the dynamics that arise from interactions within social networks, analyzing the individual behavior of each profile. Said model considers a simplified construction of a social network while…

Social and Information Networks · Computer Science 2019-03-15 Juan Camilo Ramírez de los Rios , Paula Alejandra Escudero Marín , María Camila Vásquez-Correa

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

We derive a class of macroscopic differential equations that describe collective adaptation, starting from a discrete-time stochastic microscopic model. The behavior of each agent is a dynamic balance between adaptation that locally…

Adaptation and Self-Organizing Systems · Physics 2024-05-15 Yuzuru Sato , Eizo Akiyama , James P. Crutchfield

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…

Trading and Market Microstructure · Quantitative Finance 2010-11-12 Georges Harras , Didier Sornette

Background: We study mechanisms underlying the collective emotional behavior of Bloggers by using the agent-based modeling and the parameters inferred from the related empirical data. Methodology/Principal Findings: A bipartite network of…

Social and Information Networks · Computer Science 2011-10-25 Marija Mitrović , Bosiljka Tadić

We investigate a variation of the classical voter model in which the set of influencing agents depends on an individual's current opinion. The initial population consists of a random sample of equally sized sub-populations for each state,…

Physics and Society · Physics 2025-09-30 Francisco J. Muñoz , Juan Carlos Nuño