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The objective of this work is the investigation of complexity, asymmetry, stochasticity and non-linearity of the financial and economic systems by using the tools of statistical mechanics and information theory. More precisely, this thesis…

统计金融 · 定量金融 2024-08-30 Rubina Zadourian

We examine the dynamics of informational efficiency in a market with asymmetrically informed, boundedly rational traders who adaptively learn optimal strategies using simple multiarmed bandit (MAB) algorithms. The strategies available to…

理论经济学 · 经济学 2024-11-11 Aleksei Pastushkov

Economies and societal structures in general are complex stochastic systems which may not lend themselves well to algebraic analysis. An addition of subjective value criteria to the mechanics of interacting agents will further complicate…

综合金融 · 定量金融 2018-12-07 Dmitriy Volinskiy , Lana Cuthbertson , Omid Ardakanian

We investigate the possibility of completing financial markets in a model with no exogenous probability measure and market imperfections. A necessary and sufficient condition is obtained for such extension to be possible.

数理金融 · 定量金融 2021-09-15 Gianluca Cassese

We study the emergence of instabilities in a stylized model of a financial market, when different market actors calculate prices according to different (local) market measures. We derive typical properties for ensembles of large random…

交易与市场微观结构 · 定量金融 2012-09-04 Marco Bardoscia , Giacomo Livan , Matteo Marsili

We study the ex-ante minimization of market inefficiency, defined in terms of minimum deviation of market prices from fundamental values, from a centralized planner's perspective. Prices are pressured from exogenous trading actions of…

风险管理 · 定量金融 2021-05-13 Kerstin Awiszus , Agostino Capponi , Stefan Weber

Uniswap -- and other constant product markets -- appear to work well in practice despite their simplicity. In this paper, we give a simple formal analysis of constant product markets and their generalizations, showing that, under some…

交易与市场微观结构 · 定量金融 2021-02-11 Guillermo Angeris , Hsien-Tang Kao , Rei Chiang , Charlie Noyes , Tarun Chitra

I present an overview of some recent advancements on the empirical analysis and theoretical modeling of the process of price formation in financial markets as the result of the arrival of orders in a limit order book exchange. After…

交易与市场微观结构 · 定量金融 2021-05-04 Fabrizio Lillo

The paper discusses various practical consequences of treating economics and finance as an inherently dynamic and chaotic system. On the theoretical side this looks at the general applicability of the market-making pricing approach to…

综合金融 · 定量金融 2011-05-30 Geoff Willis

We show, by studying in detail the market prices of options on liquid markets, that the market has empirically corrected the simple, but inadequate Black-Scholes formula to account for two important statistical features of asset…

凝聚态物理 · 物理学 2008-02-03 Marc Potters , Rama Cont , Jean-Philippe Bouchaud

We study the optimal liquidation problem in a market model where the bid price follows a geometric pure jump process whose local characteristics are driven by an unobservable finite-state Markov chain and by the liquidation rate. This model…

数理金融 · 定量金融 2019-06-27 Katia Colaneri , Zehra Eksi , Rüdiger Frey , Michaela Szölgyenyi

Stylized facts can be regarded as constraints for any modeling attempt of price dynamics on a financial market, in that an empirically reasonable model has to reproduce these stylized facts at least qualitatively. The dynamics of market…

计算金融 · 定量金融 2010-04-12 Stefan Reimann , Andreas Tupak

Social influence is ubiquitous in cultural markets, from book recommendations in Amazon, to song popularities in iTunes and the ranking of newspaper articles in the online edition of the New York Times to mention only a few. Yet social…

社会与信息网络 · 计算机科学 2015-05-26 Pascal Van Hentenryck , Andres Abeliuk , Franco Berbeglia , Gerardo Berbeglia

Functions or 'functionings' enable to give a structure to any activity and their combinations constitute the capabilities which characterize economic assets such as work utility. The basic law of supply and demand naturally emerges from…

综合经济学 · 经济学 2020-07-29 Emmanuel Chauvet

The aim of this paper is to propose a heterogeneous agent model of stock markets that develop complicated endogenous price fluctuations. We find occurrences of non-stationary chaos, or speculative bubble, are caused by the heterogeneity of…

混沌动力学 · 物理学 2013-09-11 Taisei Kaizoji

We discuss - in what is intended to be a pedagogical fashion - a criterion, which is a lower bound on a certain ratio, for when a stock (or a similar instrument) is not a good investment in the long term, which can happen even if the…

风险管理 · 定量金融 2017-08-01 Zura Kakushadze

We study a dynamical model of interconnected firms which allows for certain market imperfections and frictions, restricted here to be myopic price forecasts and slow adjustment of production. Whereas the standard rational equilibrium is…

经济学 · 定量金融 2015-06-22 Julius Bonart , Jean-Philippe Bouchaud , Augustin Landier , David Thesmar

In this paper, we analyze examples of research institutes that stand out in scientific excellence and social impact. We define key practices for evaluating research results, economic conditions, and the selection of specific research…

A self-organized model with social percolation process is proposed to describe the propagations of information for different trading ways across a social system and the automatic formation of various groups within market traders. Based on…

统计力学 · 物理学 2009-10-31 Zhi-Feng Huang

A constrained informationally efficient market is defined to be one whose price process arises as the outcome of some equilibrium where agents face restrictions on trade. This paper investigates the case of short sale constraints, a setting…

综合金融 · 定量金融 2014-01-10 Robert A. Jarrow , Martin Larsson