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Polarization issue is generally subject to ideological polarization and affective polarization. In particular, affective polarization usually accelerates the polarization process and transform social interactions into a zero-sum game. Yet,…

Physics and Society · Physics 2023-04-27 Peng-Bi Cui

Discussions of political disagreement emphasize two patterns: polarization, where beliefs diverge toward opposite extremes on each issue dimension; and issue alignment, where individuals' views across issues become more internally…

Theoretical Economics · Economics 2026-03-10 Tuval Danenberg

The dynamical origin of opinion polarization in the real world is an interesting topic physical scientists may help to understand. To properly model the dynamics, the theory must be fully compatible with findings by social psychologists on…

Adaptation and Self-Organizing Systems · Physics 2014-09-03 H. F. Chau , C. Y. Wong , F. K. Chow , C. -H. F. Fung

As a typical representation of complex networks studied relatively thoroughly, financial market presents some special details, such as its nonconservation and opinions spreading. In this model, agents congregate to form some clusters, which…

Other Condensed Matter · Physics 2007-05-23 Jie Wang , Chun-Xia Yang , Pei-Ling Zhou , Ying-Di Jin , Tao Zhou , Bing-Hong Wang

Using the Minority Game model we study a broad spectrum of problems of market mechanism. We study the role of different types of agents: producers, speculators as well as noise traders. The central issue here is the information flow :…

Statistical Mechanics · Physics 2009-10-31 Damien Challet , Matteo Marsili , Yi-Cheng Zhang

In market modeling, one often treats buyers as a homogeneous group. In this paper we consider buyers with heterogeneous preferences and products available in many variants. Such a framework allows us to successfully model various market…

Trading and Market Microstructure · Quantitative Finance 2009-01-06 Matus Medo , Yi-Cheng Zhang

We study a stochastic model of anonymous influence with conformist and anti-conformist individuals. Each agent with a `yes' or `no' initial opinion on a certain issue can change his opinion due to social influence. We consider anonymous…

Social and Information Networks · Computer Science 2019-06-17 Michel Grabisch , Alexis Poindron , Agnieszka Rusinowska

The aim of this work consists in the study of the optimal investment strategy for a behavioural investor, whose preference towards risk is described by both a probability distortion and an S-shaped utility function. Within a continuous-time…

Portfolio Management · Quantitative Finance 2013-04-30 Miklos Rasonyi , Andrea M. Rodrigues

We introduce a minimal Agent Based Model for financial markets to understand the nature and Self-Organization of the Stylized Facts. The model is minimal in the sense that we try to identify the essential ingredients to reproduce the main…

Trading and Market Microstructure · Quantitative Finance 2009-11-13 V. Alfi , M. Cristelli , L. Pietronero , A. Zaccaria

We review the recent approaches to modelling financial markets based on multi-agent systems. After a brief summary of the basic stylised facts observed in real-market time-series we discuss some simple agent-based systems which are…

Physics and Society · Physics 2008-12-02 Tobias Galla , Giancarlo Mosetti , Yi-Cheng Zhang

Understanding social polarization requires integrating insights from psychology, sociology, and complex systems science. Agent-based modeling provides a natural framework to combine perspectives from different fields and explore how…

Physics and Society · Physics 2026-04-22 Alina Dubovskaya , David J. P. O'Sullivan , Michael Quayle

The rise of social media has fundamentally transformed how people engage in public discourse and form opinions. While these platforms offer unprecedented opportunities for democratic engagement, they have been implicated in increasing…

Social and Information Networks · Computer Science 2025-06-23 Tim Donkers , Jürgen Ziegler

During a speculative episode the price of an item jumps from an initial level p_1 to a peak level p_2 before more or less returning to level p_1. The ratio p_2/p_1 is referred to as the amplitude A of the peak. This paper shows that for a…

Statistical Mechanics · Physics 2009-10-31 B. M. Roehner

It is known that individual opinions on different policy issues often align to a dominant ideological dimension (e.g. "left" vs. "right") and become increasingly polarized. We provide an agent-based model that reproduces these two stylized…

Physics and Society · Physics 2020-10-28 Simon Schweighofer , David Garcia , Frank Schweitzer

Biondi et al. (2012) develop an analytical model to examine the emergent dynamic properties of share market price formation over time, capable to capture important stylized facts. These latter properties prove to be sensitive to regulatory…

General Finance · Quantitative Finance 2021-09-27 Yuri Biondi , Simone Righi

We document and analyze the empirical facts concerning one of the clearest evidence of speculation in financial trading as observed in the postage collection stamp market. We unravel some of the mechanisms of speculative behavior which…

Statistical Mechanics · Physics 2009-10-31 Bertrand Roehner , D. Sornette

We consider a market where many agents trade many different types of products with each other. We model development of collective modes in this market, and quantify these by fluctuations that scale with time with a Hurst exponent of about…

Condensed Matter · Physics 2009-10-31 Raul Donangelo , Alex Hansen , Kim Sneppen , Sergio R. Souza

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…

Statistical Finance · Quantitative Finance 2009-11-13 Shi-Mei Jiang , Shi-Min Cai , Tao Zhou , Pei-Ling Zhou

One form of long-term behavior revealed by opinion dynamics simulations is intermittency, where an individual cycles between eras of stable, constant beliefs and turbulent, fluctuating beliefs, for example when inferring the political bias…

Physics and Society · Physics 2023-08-01 Nicholas Kah Yean Low , Andrew Melatos

Generalization of the minority game to more than one market is considered. At each time step every agent chooses one of its strategies and acts on the market related to this strategy. If the payoff function allows for strong fluctuation of…

Trading and Market Microstructure · Quantitative Finance 2011-05-12 Karol Wawrzyniak , Wojciech Wislicki
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