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Signal amplification in an agent-based herding model

A growing part of the behavioral finance literature has addressed some of the stylized facts of financial time series as macroscopic patterns emerging from herding interactions among groups of agents with heterogeneous trading strategies and a limited rationality. We extend a stochastic herding formalism introduced for the modeling of decision making among financial agents, in order to take also into account an external influence. In particular, we study the amplification of an external signal imposed upon the agents by a mechanism of resonance. This signal can be interpreted as an advertising or a public perception in favor or against one of the two possible trading behaviors, thus periodically breaking the symmetry of the system and acting as a continuously varying exogenous shock. The conditions for the ensemble of agents to more accurately follow the periodicity of the signal are studied, finding a maximum in the response of the system for a given range of values of both the noise and the frequency of the input signal.

 

Signal amplification in an agent-based herding model

Adrián Carro, Raúl Toral, Maxi San Miguel

http://arxiv.org/abs/1302.6477

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Collaboration is the New Competition

Five ways to drive large-scale social change by working cooperatively.

Via ddrrnt
ddrrnt's curator insight, January 12, 2:19 AM

Leaders and organizations are acknowledging that even their best individual efforts can't stack up against today's complex and interconnected problems. They are putting aside self-interests and collaborating to build a new civic infrastructure to advance their shared objectives. It's called collective impact and it's a growing trend across the country. (...)

While collaboration is certainly not a foreign concept, what we're seeing around the country is the coming together of non-traditional partners, and a willingness to embrace new ways of working together. And, this movement is yielding promising results.

... five lessons for driving large-scale social change through collaboration:


  1. Clearly define what you can do together: As Dana O'Donovan of the Monitor Institute has noted, many organizations find collaboration to be messy and time consuming. From the very beginning, you must develop clarity of purpose and articulate, "What can we do together that we could not do alone?" (...)
  2. Transcend parochialism: Even the most well intended collaboration is often crippled by parochialism. Individual organizations earmark their participation and resources for activities that perfectly align with their own work or they use the collaboration platform as a way to get other participants to fund their own priorities. (...)
  3. Adapt to data: The complex, multidisciplinary problems that many collaborative projects tackle do not have easy fixes. These challenges require continuous learning and innovation and the use of real-time data to help participants understand what is and isn't working. Adjustments must be made on the fly. (...)
  4. Feed the field: You have an obligation to share what you learn — both the results and the methods for achieving them. Living Cities has long understood the value that our member institutions get by learning and working together. (...)
  5. Support the backbone: In our experience, progress is best achieved when a "backbone organization," keeps the group's work moving forward. Staff at these organizations ensure that work is completed between meetings, track data, enable adaptation, disseminate knowledge, and build buy-in and ownership from all participants.(...)

Ben Hecht

Ben Hecht is President & CEO of Living Cities, an organization that harnesses the collective knowledge of its 22 member foundations and financial institutions to benefit low income people and the cities where they live.