Experimental evidence for the interplay between individual wealth and transaction network

We conduct a market experiment with human agents in order to explore the structure of transaction networks and to study the dynamics of wealth accumulation. The experiment is carried out on our platform for 97 days with 2,095 effective participants and 16,936 times of transactions. From these data, the hybrid distribution (log-normal bulk and power-law tail) in the wealth is observed and we demonstrate that the transaction networks in our market are always scale-free and disassortative even for those with the size of the order of few hundred. We further discover that the individual wealth is correlated with its degree by a power-law function which allows us to relate the exponent of the transaction network degree distribution to the Pareto index in wealth distribution.     

Entropy and equilibrium state of free market models

Many recent models of trade dynamics use the simple idea of wealth exchanges among economic agents in order to obtain a stable or equilibrium distribution of wealth among the agents. In particular, a plain analogy compares the wealth in a society with the energy in a physical system, and the trade between agents to the energy exchange between molecules during collisions. In physical systems, the energy exchange among molecules leads to a state of equipartition of the energy and to an equilibrium situation where the entropy is a maximum. On the other hand, in a large class of exchange models, the system converges to a very unequal condensed state, where one or a few agents concentrate all the wealth of the society while the wide majority of agents shares zero or almost zero fraction of the wealth. So, in those economic systems a minimum entropy state is attained. We propose here an analytical model where we investigate the effects of a particular class of economic exchanges that minimize the entropy. By solving the model we discuss the conditions that can drive the system to a state of minimum entropy, as well as the mechanisms to recover a kind of equipartition of wealth.     

Visibility graph analysis on quarterly macroeconomic series of China based on complex network theory

The visibility graph approach and complex network theory provide a new insight into time series analysis. The inheritance of the visibility graph from the original time series was further explored in the paper. We found that degree distributions of visibility graphs extracted from Pseudo Brownian Motion series obtained by the Frequency Domain algorithm exhibit exponential behaviors, in which the exponential exponent is a binomial function of the Hurst index inherited in the time series. Our simulations presented that the quantitative relations between the Hurst indexes and the exponents of degree distribution function are different for different series and the visibility graph inherits some important features of the original time series. Further, we convert some quarterly macroeconomic series including the growth rates of value-added of three industry series and the growth rates of Gross Domestic Product series of China to graphs by the visibility algorithm and explore the topological properties of graphs associated from the four macroeconomic series, namely, the degree distribution and correlations, the clustering coefficient, the average path length, and community structure. Based on complex network analysis we find degree distributions of associated networks from the growth rates of value-added of three industry series are almost exponential and the degree distributions of associated networks from the growth rates of GDP series are scale free. We also discussed the assortativity and disassortativity of the four associated networks as they are related to the evolutionary process of the original macroeconomic series. All the constructed networks have “small-world” features. The community structures of associated networks suggest dynamic changes of the original macroeconomic series. We also detected the relationship among government policy changes, community structures of associated networks and macroeconomic dynamics. We find great influences of government policies in China on the changes of dynamics of GDP and the three industries adjustment. The work in our paper provides a new way to understand the dynamics of economic development.     

Neutron diffraction study of the magnetic structure of Na2 RuO 4

We present a novel model to simulate real social networks of complex interactions, based in a system of colliding particles (agents). The network is build by keeping track of the collisions and evolves in time with correlations which emerge due to the mobility of the agents. Therefore, statistical features are a consequence only of local collisions among its individual agents. Agent dynamics is realized by an event-driven algorithm of collisions where energy is gained as opposed to physical systems which have dissipation. The model reproduces empirical data from networks of sexual interactions, not previously obtained with other approaches.     

Influence of a network structure on the network effect in the communication service market

In this study, we analyze the network effect in a model of a personal communication market, by using a multi-agent based simulation approach. We introduce into the simulation model complex network structures as the interaction patterns of agents. With complex network models, we investigate the dynamics of a market in which two providers are competing. We also examine the structure of networks that affect the complex behavior of the market. By a series of simulations, we show that the structural properties of complex networks, such as the clustering coefficient and degree correlation, have a major influence on the dynamics of the market. We find that the network effect is increased if the interaction pattern of agents is characterized by a high clustering coefficient, or a positive degree correlation. We also discuss a suitable model of the interaction pattern for reproducing market dynamics in the real world, by performing simulations using real data of a social network.     

Theory of rumour spreading in complex social networks

We introduce a general stochastic model for the spread of rumours, and derive mean-field equations that describe the dynamics of the model on complex social networks (in particular, those mediated by the Internet). We use analytical and numerical solutions of these equations to examine the threshold behaviour and dynamics of the model on several models of such networks: random graphs, uncorrelated scale-free networks and scale-free networks with assortative degree correlations. We show that in both homogeneous networks and random graphs the model exhibits a critical threshold in the rumour spreading rate below which a rumour cannot propagate in the system. In the case of scale-free networks, on the other hand, this threshold becomes vanishingly small in the limit of infinite system size. We find that the initial rate at which a rumour spreads is much higher in scale-free networks than in random graphs, and that the rate at which the spreading proceeds on scale-free networks is further increased when assortative degree correlations are introduced. The impact of degree correlations on the final fraction of nodes that ever hears a rumour, however, depends on the interplay between network topology and the rumour spreading rate. Our results show that scale-free social networks are prone to the spreading of rumours, just as they are to the spreading of infections. They are relevant to the spreading dynamics of chain emails, viral advertising and large-scale information dissemination algorithms on the Internet.     

Pareto and Boltzmann-Gibbs behaviors in a deterministic multi-agent system

A deterministic system of interacting agents is considered as a model for economic dynamics. The dynamics of the system is described by a coupled map lattice with nearest neighbor interactions. The evolution of each agent results from the competition between two factors: the agent’s own tendency to grow and the environmental influence that moderates this growth. Depending on the values of the parameters that control these factors, the system can display Pareto or Boltzmann-Gibbs statistical behaviors in its asymptotic dynamical regime. The regions where these behaviors appear are calculated on the space of parameters of the system. Other statistical properties, such as the mean wealth, the standard deviation, and the Gini coefficient characterizing the degree of equity in the wealth distribution are also calculated.     

Agreement dynamics of finite-memory language games on networks

We propose a Finite-Memory Naming Game (FMNG) model with respect to the bounded rationality of agents or finite resources for information storage in communication systems. We study its dynamics on several kinds of complex networks, including random networks, small-world networks and scale-free networks. We focus on the dynamics of the FMNG affected by the memory restriction as well as the topological properties of the networks. Interestingly, we found that the most important quantity, the convergence time of reaching the consensus, shows some non-monotonic behaviors by varying the average degrees of the networks with the existence of the fastest convergence at some specific average degrees. We also investigate other main quantities, such as the success rate in negotiation, the total number of words in the system and the correlations between agents of full memory and the total number of words, which clearly explain the nontrivial behaviors of the convergence. We provide some analytical results which help better understand the dynamics of the FMNG. We finally report a robust scaling property of the convergence time, which is regardless of the network structure and the memory restriction.     

Evolution of the Distribution of Wealth in an Economic Environment Driven by Local Nash Equilibria

We present and analyze a model for the evolution of the wealth distribution within a heterogeneous economic environment. The model considers a system of rational agents interacting in a game theoretical framework, through fairly general assumptions on the cost function. This evolution drives the dynamic of the agents in both wealth and economic configuration variables. We consider a regime of scale separation where the large scale dynamics is given by a hydrodynamic closure with a Nash equilibrium serving as the local thermodynamic equilibrium. The result is a system of gas dynamics-type equations for the density and average wealth of the agents on large scales. We recover the inverse gamma distribution as an equilibrium in the particular case of quadratic cost functions which has been previously considered in the literature.     

The effects of degree correlations on network topologies and robustness

Complex networks have been applied to model numerous interactive nonlinear systems in the real world. Knowledge about network topology is crucial to an understanding of the function, performance and evolution of complex systems. In the last few years, many network metrics and models have been proposed to investigate the network topology, dynamics and evolution. Since these network metrics and models are derived from a wide range of studies, a systematic study is required to investigate the correlations among them. The present paper explores the effect of degree correlation on the other network metrics through studying an ensemble of graphs where the degree sequence (set of degrees) is fixed. We show that to some extent, the characteristic path length, clustering coefficient, modular extent and robustness of networks are directly influenced by the degree correlation.     

Relationship between degree-rank distributions and degree distributions of complex networks

Both the degree distribution and the degree-rank distribution, which is a relationship function between the degree and the rank of a vertex in the degree sequence obtained from sorting all vertices in decreasing order of degree, are important statistical properties to characterize complex networks. We derive an exact mathematical relationship between degree-rank distributions and degree distributions of complex networks. That is, for arbitrary complex networks, the degree-rank distribution can be derived from the degree distribution, and the reverse is true. Using the mathematical relationship, we study the degree-rank distributions of scale-free networks and exponential networks. We demonstrate that the degree-rank distributions of scale-free networks follow a power law only if scaling exponent λ>2. We also demonstrate that the degree-rank distributions of exponential networks follow a logarithmic law. The simulation results in the BA model and the exponential BA model verify our results.     

基于Kendall改进的同步算法癫痫脑网络分析

提出了一种基于Kendall等级相关改进的同步算法IRC(inverse rank correlation).Kendall等级相关是非线性动力学分析的一般化算法,可有效地度量变量间的非线性相关性.复杂网络的研究已逐渐深入到社会科学的各个领域,脑网络的研究已经成为当今脑功能研究的热点.利用改进的IRC算法,基于脑电EEG(electroencephalogram)数据来构建大脑功能性网络.对构建的脑功能网络的度指标进行了分析,以调查癫痫脑功能网络是否异于正常人.结果显示:使用该改进的算法能够对癫痫和正常脑功能网络显著区分,且只需要记录很短的脑电数据.实验结果数据表明,该方法适用于区分癫痫和正常脑组织网络度指标,它可有助于进一步地加深对大脑的神经动力学行为的研究,并为临床诊断提供有效工具.     

Modeling wealth distribution in growing markets

We introduce an auto-regressive model which captures the growing nature of realistic markets. In our model agents do not trade with other agents, they interact indirectly only through a market. Change of their wealth depends, linearly on how much they invest, and stochastically on how much they gain from the noisy market. The average wealth of the market could be fixed or growing. We show that in a market where investment capacity of agents differ, average wealth of agents generically follow the Pareto-law. In few cases, the individual distribution of wealth of every agentcould also be obtained exactly. We also show that the underlying dynamics of other well studied kinetic models of markets can be mapped to the dynamics of our auto-regressive model.     

Motif structure and cooperation in real-world complex networks

Networks of dynamical nodes serve as generic models for real-world systems in many branches of science ranging from mathematics to physics, technology, sociology and biology. Collective behavior of agents interacting over complex networks is important in many applications. The cooperation between selfish individuals is one of the most interesting collective phenomena. In this paper we address the interplay between the motifs’ cooperation properties and their abundance in a number of real-world networks including yeast protein-protein interaction, human brain, protein structure, email communication, dolphins’ social interaction, Zachary karate club and Net-science coauthorship networks. First, the amount of cooperativity for all possible undirected subgraphs with three to six nodes is calculated. To this end, the evolutionary dynamics of the Prisoner’s Dilemma game is considered and the cooperativity of each subgraph is calculated as the percentage of cooperating agents at the end of the simulation time. Then, the three- to six-node motifs are extracted for each network. The significance of the abundance of a motif, represented by a Z-value, is obtained by comparing them with some properly randomized versions of the original network. We found that there is always a group of motifs showing a significant inverse correlation between their cooperativity amount and Z-value, i.e. the more the Z-value the less the amount of cooperativity. This suggests that networks composed of well-structured units do not have good cooperativity properties.     

Bubbles,crashes and intermittency in agent based market models

We define and study a rather complex market model, inspired from the Santa Fe artificial market and the Minority Game. Agents have different strategies among which they can choose, according to their relative profitability, with the possibility of not participating to the market. The price is updated according to the excess demand, and the wealth of the agents is properly accounted for. Only two parameters play a significant role: one describes the impact of trading on the price, and the other describes the propensity of agents to be trend following or contrarian. We observe three different regimes, depending on the value of these two parameters: an oscillating phase with bubbles and crashes, an intermittent phase and a stable `rational' market phase. The statistics of price changes in the intermittent phase resembles that of real price changes, with small linear correlations, fat tails and long range volatility clustering. We discuss how the time dependence of these two parameters spontaneously drives the system in the intermittent region. We analyze quantitatively the temporal correlation of activity in the intermittent phase, and show that the `random time strategy shift' mechanism that we proposed earlier allows one to understand the observed long ranged correlations. Other mechanisms leading to long ranged correlations are also reviewed. We discuss several other issues, such as the formation of bubbles and crashes, the influence of transaction costs and the distribution of agents wealth. Received 5 July 2002 / Received in final form 9 December 2002 Published online 14 February 2003 RID="a" ID="a"e-mail: irene.giardina@roma1.infn.it     

Proximity networks and epidemics

Disease spread in most biological populations requires the proximity of agents. In populations where the individuals have spatial mobility, the contact graph is generated by the “collision dynamics” of the agents, and thus the evolution of epidemics couples directly to the spatial dynamics of the population. We first briefly review the properties and the methodology of an agent-based simulation (EPISIMS) to model disease spread in realistic urban dynamic contact networks. Using the data generated by this simulation, we introduce the notion of dynamic proximity networks which takes into account the relevant time-scales for disease spread: contact duration, infectivity period, and rate of contact creation. This approach promises to be a good candidate for a unified treatment of epidemic types that are driven by agent collision dynamics. In particular, using a simple model, we show that it can account for the observed qualitative differences between the degree distributions of contact graphs of diseases with short infectivity period (such as air-transmitted diseases) or long infectivity periods (such as HIV).     

The effects of multifractality on the statistics of return intervals

We study the statistics of the return intervals in multifractal data sets with and without linear correlations. In the absence of linear correlations, we find that the nonlinear correlations inherent in multifractal data yield (i) a power-law decay of the autocorrelation function of the return intervals, (ii) a power-law increase of the conditional return period as function of the previous return interval, and (iii) a power-law decay of the probability density function of the return intervals. These features remain unchanged in the presence of linear long-term correlations. Deviations observed in the asymptotic behaviour are probably due to finite size effects. We compare our results with those obtained for uncorrelated and for monofractal long-term correlated data, and demonstrate significant differences. Applications can be found in studying the dynamics of several processes characterised by multifractality, such as turbulence, climate dynamics, heartbeat dynamics, stock market dynamics, and tele-traffic in large networks.     

Economic exchanges in a stratified society: End of the middle class?

We study the effect of the social stratification on the wealth distribution on a system of interacting economic agents that are constrained to interact only within their own economic class. The economical mobility of the agents is related to its success in exchange transactions. Different wealth distributions are obtained as a function of the width of the economic class. We find a range of widths in which the society is divided in two classes separated by a deep gap that prevents further exchange between poor and rich agents. As a consequence, the middle wealth class is eliminated. The high values of the Gini indices obtained in these cases indicate a highly unequal society. On the other hand, lower and higher widths induce lower Gini indices and a fairer wealth distribution.     

The unfair consequences of equal opportunities: Comparing exchange models of wealth distribution

Simple agent based exchange models are a commonplace in the study of wealth distribution of artificial societies. Generally, each agent is characterized by its wealth and by a risk-aversion factor, and random exchanges between agents allow for a redistribution of the wealth. However, the detailed influence of the amount of capital exchanged has not been fully analyzed yet. Here we present a comparison of two exchange rules and also a systematic study of the time evolution of the wealth distribution, its functional dependence, the Gini coefficient and time correlation functions. In many cases a stable state is attained, but, interesting, some particular cases are found in which a very slow dynamics develops. Finally, we observe that the time evolution and the final wealth distribution are strongly dependent on the exchange rules in a nontrivial way.     

Living in an irrational society: Wealth distribution with correlations between risk and expected profits

Different models to study the wealth distribution in an artificial society have considered a transactional dynamics as the driving force. Those models include a risk aversion factor, but also a finite probability of favoring the poorer agent in a transaction. Here, we study the case where the partners in the transaction have a previous knowledge of the winning probability and adjust their risk aversion taking this information into consideration. The results indicate that a relatively equalitarian society is obtained when the agents risk in direct proportion to their winning probabilities. However, it is the opposite case that delivers wealth distribution curves and Gini indices closer to empirical data. This indicates that, at least for this very simple model, either agents have no knowledge of their winning probabilities, either they exhibit an “irrational” behavior risking more than reasonable.