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Economic theory implies strong limitations on what types of consumption behavior are considered rational. Rationality implies that the Slutsky matrix, which captures the substitution effects of compensated price changes on demand for…

计量经济学 · 经济学 2026-02-11 Florian Gunsilius , Lonjezo Sithole

Slutsky symmetry and negative semidefiniteness are necessary and sufficient conditions for the rationality of demand functions. While the empirical implications of Slutsky negative semidefiniteness in repeated cross-sectional demand data…

计量经济学 · 经济学 2025-10-29 Haruki Kono

Standard economic theory assumes that agents in markets behave rationally. However, the observation of extremely large fluctuations in the price of financial assets that are not correlated to changes in their fundamental value, as well as…

物理与社会 · 物理学 2015-06-26 Sitabhra Sinha

An important goal of empirical demand analysis is choice and welfare prediction on counterfactual budget sets arising from potential policy-interventions. Such predictions are more credible when made without arbitrary…

计量经济学 · 经济学 2020-10-02 Debopam Bhattacharya

The response of thermodynamic systems perturbed out of an equilibrium steady-state is described by the reciprocal and the fluctuation-dissipation relations. The so-called fluctuation theorems extended the study of fluctuations far beyond…

统计力学 · 物理学 2020-02-21 Matteo Polettini , Massimiliano Esposito

Decision-making individuals often imitate their highest-earning fellows rather than optimize their own utilities, due to bounded rationality and incomplete information. Perpetual fluctuations between decisions have been reported as the…

系统与控制 · 电气工程与系统科学 2023-02-16 Yiheng Fu , Pouria Ramazi

The development of stochastic thermodynamics during the last decades prompted the discovery of novel nonequilibrium relations refining our understanding of the second law in small fluctuating systems and its connection with information…

物理与社会 · 物理学 2025-11-19 Luis Irisarri , Lucas Trigal , Raúl Toral , Gonzalo Manzano

In this paper we investigate a model of consensus decision making [Hartnett A. T., et al., Phys. Rev. Lett., 2016, 116, 038701] following a statistical physics approach presented in [Sarkanych P., et al., Phys. Biol., 2023, 20, 045005].…

统计力学 · 物理学 2024-09-25 P. Sarkanych , Yu. Sevinchan , M. Krasnytska , P. Romanczuk , Yu. Holovatch

By specifying behaviour across multiple agents, social norms are a coordination approach to resolving social dilemmas. Decentralized and wide adoption can be achieved by norms whose prescription involves interpreting stochastic signals in…

计算机科学与博弈论 · 计算机科学 2026-05-20 Maximilian Puelma Touzel

Understanding how systems respond to external perturbations is a fundamental challenge in physics, particularly for non-equilibrium and non-stationary processes. The fluctuation-dissipation theorem provides a complete framework for…

统计力学 · 物理学 2026-05-06 Jiming Zheng , Zhiyue Lu

Game theoretic equilibria are mathematical expressions of rationality. Rational agents are used to model not only humans and their software representatives, but also organisms, populations, species and genes, interacting with each other and…

计算机科学与博弈论 · 计算机科学 2015-05-13 Dusko Pavlovic

This paper develops a comprehensive theoretical framework that imports concepts from stochastic thermodynamics to model price impact and characterize the feasibility of round-trip arbitrage in financial markets. A trading cycle is treated…

数理金融 · 定量金融 2025-12-04 Amit Kumar Jha

We investigate thermodynamics of general nonequilibrium processes stopped at stochastic times. We propose a systematic strategy for constructing fluctuation-theorem-like martingales for each thermodynamic functional, yielding a family of…

统计力学 · 物理学 2023-06-02 Haoran Yang , Hao Ge

To study the assumption that the utility maximization hypothesis implicitly adds to consumer theory, we consider a mathematical representation of pre-marginal revolution consumer theory based on subjective exchange ratios. We introduce two…

理论经济学 · 经济学 2025-11-19 Yuhki Hosoya

In this paper we re-examine the traditional problem of connecting the internal fluctuations of a system to its response to external forcings and extend the classical theory in order to be able to encompass also nonlinear processes. With…

统计力学 · 物理学 2015-06-04 Valerio Lucarini , Matteo Colangeli

Nontransitive choices have long been an area of curiosity within economics. However, determining whether nontransitive choices represent an individual's preference is a difficult task since choice data is inherently stochastic. This paper…

理论经济学 · 经济学 2023-05-01 Mogens Fosgerau , John Rehbeck

We propose a simple statistical-physics-inspired model for the effect of intrinsic fluctuations on supply and demand in markets. The model consists of agents that trade in two types of goods of which the total number is separately…

物理与社会 · 物理学 2021-01-13 J. R. Mulder , René van Roij , R. A. Duine

Predicting how systems respond to external perturbations far from equilibrium remains a fundamental challenge across physics, chemistry, and biology. We present a unified response framework for stochastic Markov dynamics that integrates…

统计力学 · 物理学 2026-05-13 Jiming Zheng , Zhiyue Lu

We consider the asymptotic behaviour of the fluctuation process for large stochastic systems of interacting particles driven by both idiosyncratic and common noise with an interaction kernel \(k \in L^2(\R^d) \cap L^\infty(\R^d)\). Our…

概率论 · 数学 2026-05-28 Paul Nikolaev

We introduce a stochastic heterogeneous interacting-agent model for the short-time non-equilibrium evolution of excess demand and price in a stylized asset market. We consider a combination of social interaction within peer groups and…

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