Efficiency of Random strategies and Self-Organized Criticality in Socio-Economic Systems

by Prof. Andrea Rapisarda (Dipartimento di Fisica e Astronomia and INFN, Università di Catania)

Thursday 11 Feb 2016, 14:30 → 15:30 Europe/Rome

0M03 (Dipartimento di Scienze Na)

 
Abstract 
 
The lecture will consist of two parts. In the first one I will  show how, inspired by physics examples,  random strategies can be successfully applied to face problems of inefficient  dynamics in social systems.
In the second part I will   apply random strategies to financial markets and present some model, characterized by self-organized criticality, which is  able to generate endogenously a realistic price dynamics and to reproduce well-known stylized facts. In a community of heterogeneous traders, the spreading of information, based on a realistic imitative behavior, drives contagion and causes market fragility. It will be shown  how the introduction of a small number of random traders is able to   stabilize the market and produce beneficial effects both at micro and at macro level.
 
 
References
 

1. "The Peter principle revisited: a computational study", A. Pluchino, A. Rapisarda, C. Garofalo, Physica A 389 (2010) 467  more info  here

 

2. "Efficient promotion strategies in hierarchical organizations" , A. Pluchino, A. Rapisarda, C. Garofalo, Physica A 390 (2011) 3496

 

3. "Accidental politicians: how randomly selected legislators can improve Parliament efficiency", A. Pluchino, C. Garofalo, A. Rapisarda, S. Spagano, M. Caserta, Physica A 390 (2011) 3944.

 

4. "Reducing financial avalanches by random investments", A.E. Biondo, A. Pluchino, A. Rapisarda, D. Helbing, Phys Rev. E 88 (2013) 062814

 

5. "Micro and Macro Benefits of Random Investments in Financial Markets", A.E. Biondo, A. Pluchino,  A. Rapisarda, Contemporary Physics 55 (2014) 318  - online version published on july 10, 2014

 

6. "Modeling financial markets by self-organized criticality", A.E. Biondo, A. Pluchino, A. Rapisarda, Phys. Rev. E 92 (2015) 042814.