Self-organized percolation and critical sales fluctuations

Gérard Weisbuch*, Sorin Solomon

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

There is a discrepancy between the standard view of equilibrium through price adjustment in economics and the observation of large fluctuations in stock markets. We study here a simple model where agents decisions not only depend upon their individual preferences but also upon information obtained from their neighbors in a social network. The model shows that information diffusion coupled to the adjustment process drives the system to criticality with large fluctuations rather than converging smoothly to equilibrium.

Original languageEnglish
Pages (from-to)1263-1272
Number of pages10
JournalInternational Journal of Modern Physics C
Volume11
Issue number6
DOIs
StatePublished - Sep 2000

Keywords

  • Criticality
  • Fluctuations
  • Percolation
  • Power Spectrum
  • Sales Dynamics

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