On Financial Markets Trading

Starting from the observation of the real trading activity, we propose a model of a stockmarket simulating all the typical phases taking place in a stock exchange. We show that there is no need of several classes of agents once one has introduced realistic constraints in order to confine money, time, gain and loss within an appropriate range. The main ingredients are local and global coupling, randomness, Zipf distribution of resources and price formation when inserting an order. The simulation starts with the initial public offer and comprises the broadcasting of news/advertisements and the building of the book, where all the selling and buying orders are stored. The model is able to reproduce fat tails and clustered volatility, the two most significant characteristics of a real stockmarket, being driven by very intuitive parameters.Comment: 18 pages, submitte

A game theoretic approach to a peer-to-peer cloud storage model

Classical cloud storage based on external data providers has been recognized to suffer from a number of drawbacks. This is due to its inherent centralized architecture which makes it vulnerable to external attacks, malware, technical failures, as well to the large premium charged for business purposes. In this paper, we propose an alternative distributed peer-to-peer cloud storage model which is based on the observation that the users themselves often have available storage capabilities to be offered in principle to other users. Our set-up is that of a network of users connected through a graph, each of them being at the same time a source of data to be stored externally and a possible storage resource. We cast the peer-to-peer storage model to a Potential Game and we propose an original decentralized algorithm which makes units interact, cooperate, and store a complete back up of their data on their connected neighbors. We present theoretical results on the algorithm as well a good number of simulations which validate our approach.Comment: 10 page

Finite-time influence systems and the Wisdom of Crowd effect

Recent contributions have studied how an influence system may affect the wisdom of crowd phenomenon. In the so-called naive learning setting, a crowd of individuals holds opinions that are statistically independent estimates of an unknown parameter; the crowd is wise when the average opinion converges to the true parameter in the limit of infinitely many individuals. Unfortunately, even starting from wise initial opinions, a crowd subject to certain influence systems may lose its wisdom. It is of great interest to characterize when an influence system preserves the crowd wisdom effect. In this paper we introduce and characterize numerous wisdom preservation properties of the basic French-DeGroot influence system model. Instead of requiring complete convergence to consensus as in the previous naive learning model by Golub and Jackson, we study finite-time executions of the French-DeGroot influence process and establish in this novel context the notion of prominent families (as a group of individuals with outsize influence). Surprisingly, finite-time wisdom preservation of the influence system is strictly distinct from its infinite-time version. We provide a comprehensive treatment of various finite-time wisdom preservation notions, counterexamples to meaningful conjectures, and a complete characterization of equal-neighbor influence systems

De Gustibus Disputandum

We propose a simple method to predict individuals' expectations about products using a knowledge network. As a complementary result, we show that the method is able, under certain conditions, to extract hidden information at neural level from a customers' choices database