Coordination of Decisions in a Spatial Agent Model

For a binary choice problem, the spatial coordination of decisions in an agent community is investigated both analytically and by means of stochastic computer simulations. The individual decisions are based on different local information generated by the agents with a finite lifetime and disseminated in the system with a finite velocity. We derive critical parameters for the emergence of minorities and majorities of agents making opposite decisions and investigate their spatial organization. We find that dependent on two essential parameters describing the local impact and the spatial dissemination of information, either a definite stable minority/majority relation (single-attractor regime) or a broad range of possible values (multi-attractor regime) occurs. In the latter case, the outcome of the decision process becomes rather diverse and hard to predict, both with respect to the share of the majority and their spatial distribution. We further investigate how a dissemination of information on different time scales affects the outcome of the decision process. We find that a more ``efficient'' information exchange within a subpopulation provides a suitable way to stabilize their majority status and to reduce ``diversity'' and uncertainty in the decision process.Comment: submitted for publication in Physica A (31 pages incl. 17 multi-part figures

Dynamical Systems on Networks: A Tutorial

We give a tutorial for the study of dynamical systems on networks. We focus especially on "simple" situations that are tractable analytically, because they can be very insightful and provide useful springboards for the study of more complicated scenarios. We briefly motivate why examining dynamical systems on networks is interesting and important, and we then give several fascinating examples and discuss some theoretical results. We also briefly discuss dynamical systems on dynamical (i.e., time-dependent) networks, overview software implementations, and give an outlook on the field.Comment: 39 pages, 1 figure, submitted, more examples and discussion than original version, some reorganization and also more pointers to interesting direction

Financial contagion: Evolutionary optimisation of a multinational agent-based model

Over the past two decades, financial market crises with similar features have occurred in different regions of the world. Unstable cross-market linkages during a crisis are referred to as financial contagion. We simulate crisis transmission in the context of a model of market participants adopting various strategies; this allows testing for financial contagion under alternative scenarios. Using a minority game approach, we develop an agent-based multinational model and investigate the reasons for contagion. Although the phenomenon has been extensively investigated in the financial literature, it has not been studied through computational intelligence techniques. Our simulations shed light on parameter values and characteristics which can be exploited to detect contagion at an earlier stage, hence recognising financial crises with the potential to destabilise cross-market linkages. In the real world, such information would be extremely valuable in developing appropriate risk management strategies

Does social interaction destablise financial markets?

With this paper, I propose a simple asset pricing model that accounts for the influence from social interaction. Investors are assumed to make up their mind about an asset’s price based on a forecasting strategy and its past profitability as well as on the contemporaneous expectations of other market participants. Empirically analysing stocks of the DAX30 index, I provide evidence that social interaction rather destabilises financial markets. Based on my results, I state that at least, it does not have a stabilising effect

Does social interaction destabilise financial markets?

With this paper, I propose a simple asset pricing model that accounts for the influence from social interaction. Investors are assumed to make up their mind about an asset's price based on a forecasting strategy and its past profitability as well as on the contemporaneous expectations of other market participants. Empirically analysing stocks in the DAX30 index, I provide evidence that social interaction rather destabilises financial markets. At least, it does not have a stabilising effect

Opinion dynamics: models, extensions and external effects

Recently, social phenomena have received a lot of attention not only from social scientists, but also from physicists, mathematicians and computer scientists, in the emerging interdisciplinary field of complex system science. Opinion dynamics is one of the processes studied, since opinions are the drivers of human behaviour, and play a crucial role in many global challenges that our complex world and societies are facing: global financial crises, global pandemics, growth of cities, urbanisation and migration patterns, and last but not least important, climate change and environmental sustainability and protection. Opinion formation is a complex process affected by the interplay of different elements, including the individual predisposition, the influence of positive and negative peer interaction (social networks playing a crucial role in this respect), the information each individual is exposed to, and many others. Several models inspired from those in use in physics have been developed to encompass many of these elements, and to allow for the identification of the mechanisms involved in the opinion formation process and the understanding of their role, with the practical aim of simulating opinion formation and spreading under various conditions. These modelling schemes range from binary simple models such as the voter model, to multi-dimensional continuous approaches. Here, we provide a review of recent methods, focusing on models employing both peer interaction and external information, and emphasising the role that less studied mechanisms, such as disagreement, has in driving the opinion dynamics. [...]Comment: 42 pages, 6 figure

Are Opinions Based on Science: Modelling Social Response to Scientific Facts

As scientists we like to think that modern societies and their members base their views, opinions and behaviour on scientific facts. This is not necessarily the case, even though we are all (over-) exposed to information flow through various channels of media, i.e. newspapers, television, radio, internet, and web. It is thought that this is mainly due to the conflicting information on the mass media and to the individual attitude (formed by cultural, educational and environmental factors), that is, one external factor and another personal factor. In this paper we will investigate the dynamical development of opinion in a small population of agents by means of a computational model of opinion formation in a co-evolving network of socially linked agents. The personal and external factors are taken into account by assigning an individual attitude parameter to each agent, and by subjecting all to an external but homogeneous field to simulate the effect of the media. We then adjust the field strength in the model by using actual data on scientific perception surveys carried out in two different populations, which allow us to compare two different societies. We interpret the model findings with the aid of simple mean field calculations. Our results suggest that scientifically sound concepts are more difficult to acquire than concepts not validated by science, since opposing individuals organize themselves in close communities that prevent opinion consensus.Comment: 21 pages, 5 figures. Submitted to PLoS ON

Reconciling long-term cultural diversity and short-term collective social behavior

An outstanding open problem is whether collective social phenomena occurring over short timescales can systematically reduce cultural heterogeneity in the long run, and whether offline and online human interactions contribute differently to the process. Theoretical models suggest that short-term collective behavior and long-term cultural diversity are mutually excluding, since they require very different levels of social influence. The latter jointly depends on two factors: the topology of the underlying social network and the overlap between individuals in multidimensional cultural space. However, while the empirical properties of social networks are well understood, little is known about the large-scale organization of real societies in cultural space, so that random input specifications are necessarily used in models. Here we use a large dataset to perform a high-dimensional analysis of the scientific beliefs of thousands of Europeans. We find that inter-opinion correlations determine a nontrivial ultrametric hierarchy of individuals in cultural space, a result unaccessible to one-dimensional analyses and in striking contrast with random assumptions. When empirical data are used as inputs in models, we find that ultrametricity has strong and counterintuitive effects, especially in the extreme case of long-range online-like interactions bypassing social ties. On short time-scales, it strongly facilitates a symmetry-breaking phase transition triggering coordinated social behavior. On long time-scales, it severely suppresses cultural convergence by restricting it within disjoint groups. We therefore find that, remarkably, the empirical distribution of individuals in cultural space appears to optimize the coexistence of short-term collective behavior and long-term cultural diversity, which can be realized simultaneously for the same moderate level of mutual influence