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Pareto law, which states that wealth distribution in societies have a power-law tail, has been a subject of intensive investigations in statistical physics community. Several models have been employed to explain this behavior. However, most…

Trading and Market Microstructure · Quantitative Finance 2009-11-13 M. Ali Saif , Prashant M. Gade

Stochastic dominance is a crucial tool for the analysis of choice under risk. It is typically analyzed as a property of two gambles that are taken in isolation. We study how additional independent sources of risk (e.g. uninsurable labor…

Probability · Mathematics 2020-05-14 Luciano Pomatto , Philipp Strack , Omer Tamuz

The probabilistic serial (PS) rule is one of the most prominent randomized rules for the assignment problem. It is well-known for its superior fairness and welfare properties. However, PS is not immune to manipulative behaviour by the…

Computer Science and Game Theory · Computer Science 2015-01-28 Haris Aziz , Serge Gaspers , Simon Mackenzie , Nicholas Mattei , Nina Narodytska , Toby Walsh

The linear preferential attachment hypothesis has been shown to be quite successful to explain the existence of networks with power-law degree distributions. It is then quite important to determine if this mechanism is the consequence of a…

Statistical Mechanics · Physics 2009-11-07 Alexei Vazquez

A stochastic model for intermittent fluctuations due to a super-position of uncorrelated Lorentzian pulses is presented. For constant pulse duration, this is shown to result in an exponential power spectral density for the stationary…

Plasma Physics · Physics 2017-03-08 O. E. Garcia , A. Theodorsen

We address this work to investigate some statistical properties of symbolic sequences generated by a numerical procedure in which the symbols are repeated following a power law probability density. In this analysis, we consider that the sum…

Statistical Mechanics · Physics 2015-05-27 H. V. Ribeiro , E. K. Lenzi , R. S. Mendes , P. A. Santoro

Kauffman net is a dynamical system of logical variables receiving two random inputs and each randomly assigned a boolean function. We show that the attractor and transient lengths exhibit scaleless behavior with power-law distributions over…

Condensed Matter · Physics 2007-05-23 Amartya Bhattacharjya , Shoudan Liang

Probability distributions of money, income, and energy consumption per capita are studied for ensembles of economic agents. The principle of entropy maximization for partitioning of a limited resource gives exponential distributions for the…

Statistical Finance · Quantitative Finance 2010-09-02 Anand Banerjee , Victor M. Yakovenko

Power-law distributions occur in many situations of scientific interest and have significant consequences for our understanding of natural and man-made phenomena. Unfortunately, the detection and characterization of power laws is…

Data Analysis, Statistics and Probability · Physics 2009-11-12 Aaron Clauset , Cosma Rohilla Shalizi , M. E. J. Newman

Human behavioural patterns exhibit selfish or competitive, as well as selfless or altruistic tendencies, both of which have demonstrable effects on human social and economic activity. In behavioural economics, such effects have…

Multiagent Systems · Computer Science 2021-04-28 Jan E. Snellman , Gerardo Iñiguez , János Kertész , R. A. Barrio , Kimmo K. Kaski

This paper consider a highly general dissemination model that keeps track of the stochastic evolution of the distribution of wealth over a set of agents. There are two types of events: (i) units of wealth externally arrive, and (ii) units…

Probability · Mathematics 2022-07-12 K. M. D. Chan , M. R. H. Mandjes

A computational model for the distribution of wealth among the members of an ideal society is presented. It is determined that a realistic distribution of wealth depends upon two mechanisms: an asymmetric flux of wealth in trading…

Statistical Mechanics · Physics 2008-12-02 Nicola Scafetta , Sergio Picozzi , Bruce J. West

Various functions of a network of excitable units can be enhanced if the network is in the `critical regime', where excitations are, on average, neither damped nor amplified. An important question is how can such networks self-organize to…

Disordered Systems and Neural Networks · Physics 2020-02-19 Yogesh S. Virkar , Juan G. Restrepo , Woodrow L. Shew , Edward Ott

Power-law distributions are essential in computational and statistical investigations of extreme events and complex systems. The usual technique to generate power-law distributed data is to first infer the scale exponent $\alpha$ using the…

Adaptation and Self-Organizing Systems · Physics 2022-06-15 Jack Murdoch Moore , Gang Yan , Eduardo G. Altmann

In this paper, making use of recent statistical physics techniques and models, we address the specific role of randomness in financial markets, both at the micro and the macro level. In particular, we review some recent results obtained…

General Finance · Quantitative Finance 2014-10-31 Alessio Emanuele Biondo , Alessandro Pluchino , Andrea Rapisarda

In many social dilemmas, individuals tend to generate a situation with low payoffs instead of a system optimum ("tragedy of the commons"). Is the routing of traffic a similar problem? In order to address this question, we present…

Physics and Society · Physics 2007-05-23 Dirk Helbing , Martin Schonhof , Hans-Ulrich Stark , Janusz A. Holyst

Models of auctions or tendering processes are introduced. In every round of bidding the players select their bid from a probability distribution and whenever a bid is unsuccessful, it is discarded and replaced. For simple models, the…

Adaptation and Self-Organizing Systems · Physics 2009-11-07 R. D'Hulst , G. J. Rodgers

We propose a prequential or sequentially predictive formulation of the work extraction where an external agent repeats the extraction of work from a heat engine by cyclic operations based on his predictive strategy. We show that if we…

Statistical Mechanics · Physics 2022-04-19 Ken Hiura

We consider the degree distributions of preferential attachment random graph models with choice similar to those considered in recent work by Malyshkin and Paquette and Krapivsky and Redner. In these models a new vertex chooses $r$ vertices…

Probability · Mathematics 2020-08-12 John Haslegrave , Jonathan Jordan

Preferential attachment is a popular generative mechanism to explain the widespread observation of power law distributed networks. We introduce an alternative explanation for the phenomenon by allowing the link growth rates to vary across…

Physics and Society · Physics 2007-06-18 Birgitte Freiesleben de Blasio , Odd O Aalen