Crowdfunding: Geography, Social Networks, and the Timing of Investment Decisions

We examine a crowdfunding platform that connects artists with funders. Although the Internet reduces many distance-related frictions, local and distant funders exhibit different funding patterns. Local funders appear less responsive to information about the cumulative funds raised by an artist. However, this distance effect appears to proxy for a social effect: it is largely explained by funders who likely have an offline social relationship with the artist (“friends and family”). Yet, this social effect does not persist past the first investment, suggesting that it may be driven by an activity like search but not monitoring. Thus, although the platform seems to diminish many distance-sensitive costs, it does not eliminate all of them. These findings provide a deeper understanding of the abilities and limitations of online markets to facilitate transactions and convey information between buyers and sellers with varying degrees of social connectedness

Zero-range process with open boundaries

We calculate the exact stationary distribution of the one-dimensional zero-range process with open boundaries for arbitrary bulk and boundary hopping rates. When such a distribution exists, the steady state has no correlations between sites and is uniquely characterized by a space-dependent fugacity which is a function of the boundary rates and the hopping asymmetry. For strong boundary drive the system has no stationary distribution. In systems which on a ring geometry allow for a condensation transition, a condensate develops at one or both boundary sites. On all other sites the particle distribution approaches a product measure with the finite critical density \rho_c. In systems which do not support condensation on a ring, strong boundary drive leads to a condensate at the boundary. However, in this case the local particle density in the interior exhibits a complex algebraic growth in time. We calculate the bulk and boundary growth exponents as a function of the system parameters

Entanglement between Demand and Supply in Markets with Bandwagon Goods

Whenever customers' choices (e.g. to buy or not a given good) depend on others choices (cases coined 'positive externalities' or 'bandwagon effect' in the economic literature), the demand may be multiply valued: for a same posted price, there is either a small number of buyers, or a large one -- in which case one says that the customers coordinate. This leads to a dilemma for the seller: should he sell at a high price, targeting a small number of buyers, or at low price targeting a large number of buyers? In this paper we show that the interaction between demand and supply is even more complex than expected, leading to what we call the curse of coordination: the pricing strategy for the seller which aimed at maximizing his profit corresponds to posting a price which, not only assumes that the customers will coordinate, but also lies very near the critical price value at which such high demand no more exists. This is obtained by the detailed mathematical analysis of a particular model formally related to the Random Field Ising Model and to a model introduced in social sciences by T C Schelling in the 70's.Comment: Updated version, accepted for publication, Journal of Statistical Physics, online Dec 201

Dynamically Driven Renormalization Group Applied to Sandpile Models

The general framework for the renormalization group analysis of self-organized critical sandpile models is formulated. The usual real space renormalization scheme for lattice models when applied to nonequilibrium dynamical models must be supplemented by feedback relations coming from the stationarity conditions. On the basis of these ideas the Dynamically Driven Renormalization Group is applied to describe the boundary and bulk critical behavior of sandpile models. A detailed description of the branching nature of sandpile avalanches is given in terms of the generating functions of the underlying branching process.Comment: 18 RevTeX pages, 5 figure

Minimal half-spaces and external representation of tropical polyhedra

We give a characterization of the minimal tropical half-spaces containing a given tropical polyhedron, from which we derive a counter example showing that the number of such minimal half-spaces can be infinite, contradicting some statements which appeared in the tropical literature, and disproving a conjecture of F. Block and J. Yu. We also establish an analogue of the Minkowski-Weyl theorem, showing that a tropical polyhedron can be equivalently represented internally (in terms of extreme points and rays) or externally (in terms of half-spaces containing it). A canonical external representation of a polyhedron turns out to be provided by the extreme elements of its tropical polar. We characterize these extreme elements, showing in particular that they are determined by support vectors.Comment: 19 pages, 4 figures, example added with a new figure, figures improved, references update

Motion of a driven tracer particle in a one-dimensional symmetric lattice gas

We study the dynamics of a tracer particle subject to a constant driving force $E$ in a one-dimensional lattice gas of hard-core particles whose transition rates are symmetric. We show that the mean displacement of the driven tracer grows in time, $t$, as $\sqrt{\alpha t}$, rather than the linear time dependence found for driven diffusion in the bath of non-interacting (ghost) particles. The prefactor $\alpha$ is determined implicitly, as the solution of a transcendental equation, for an arbitrary magnitude of the driving force and an arbitrary concentration of the lattice gas particles. In limiting cases the prefactor is obtained explicitly. Analytical predictions are seen to be in a good agreement with the results of numerical simulations.Comment: 21 pages, LaTeX, 4 Postscript fugures, to be published in Phys. Rev. E, (01Sep, 1996

Predicting Missing Links via Local Information

Missing link prediction of networks is of both theoretical interest and practical significance in modern science. In this paper, we empirically investigate a simple framework of link prediction on the basis of node similarity. We compare nine well-known local similarity measures on six real networks. The results indicate that the simplest measure, namely common neighbors, has the best overall performance, and the Adamic-Adar index performs the second best. A new similarity measure, motivated by the resource allocation process taking place on networks, is proposed and shown to have higher prediction accuracy than common neighbors. It is found that many links are assigned same scores if only the information of the nearest neighbors is used. We therefore design another new measure exploited information of the next nearest neighbors, which can remarkably enhance the prediction accuracy.Comment: For International Workshop: "The Physics Approach To Risk: Agent-Based Models and Networks", http://intern.sg.ethz.ch/cost-p10