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How Natural Selection Can Create Both Self- and Other-Regarding Preferences, and Networked Minds

April 11, 2013 Comments (0)

Biological competition is widely believed to result in the evolution of selfish preferences. The related concept of the `homo economicus' is at the core of mainstream economics. However, there is also experimental and empirical evidence for other-regarding preferences. Here we present a theory that explains both, self-regarding and other-regarding preferences. Assuming conditions promoting non-cooperative behaviour, we demonstrate that intergenerational migration determines whether evolutionary...

Mechanical Model of Personal Income Distribution

April 9, 2013 Comments (0)

A microeconomic model is developed, which accurately predicts the shape of personal income distribution (PID) in the United States and the evolution of the shape over time. The underlying concept is borrowed from geo-mechanics and thus can be considered as mechanics of income distribution. The model allows the resolution of empirical and definitional problems associated with personal income measurements. It also serves as a firm fundament for definitions of income inequality as secondary...

Highly comparative time-series analysis: The empirical structure of time series and their methods

April 5, 2013 Comments (0)

The process of collecting and organizing sets of observations represents a common theme throughout the history of science. However, despite the ubiquity of scientists measuring, recording, and analyzing the dynamics of different processes, an extensive organization of scientific time-series data and analysis methods has never been performed. Addressing this, annotated collections of over 35 000 real-world and model-generated time series and over 9000 time-series analysis algorithms are analyzed...

Editorial: Statistical Mechanics and Social Sciences

April 5, 2013 Comments (0)

This editorial opens the special issues that the Journal of Statistical Physics has dedicated to the growing field of statistical physics modeling of social dynamics. The issues include contributions from physicists and social scientists, with the goal of fostering a better communication between these two communities.

Analysis of bibliometric indicators for individual scholars in a large data set

April 5, 2013 Comments (0)

Citation numbers and other quantities derived from bibliographic databases are becoming standard tools for the assessment of productivity and impact of research activities. Though widely used, still their statistical properties have not been well established so far. This is especially true in the case of bibliometric indicators aimed at the evaluation of individual scholars, because large-scale data sets are typically difficult to be retrieved. Here, we take advantage of a recently introduced...

Happiness and the Patterns of Life: A Study of Geolocated Tweets

April 5, 2013 Comments (0)

The patterns of life exhibited by large populations have been described and modeled both as a basic science exercise and for a range of applied goals such as reducing automotive congestion, improving disaster response, and even predicting the location of individuals. However, these studies previously had limited access to conversation content, rendering changes in expression as a function of movement invisible. In addition, they typically use the communication between a mobile phone and its...

Agent-based modeling of a price information trading business

April 3, 2013 Comments (0)

We describe an agent-based simulation of a fictional (but feasible) information trading business. The Gas Price Information Trader (GPIT) buys information about real-time gas prices in a metropolitan area from drivers and resells the information to drivers who need to refuel their vehicles. Our simulation uses real world geographic data, lifestyle-dependent driving patterns and vehicle models to create an agent-based model of the drivers. We use real world statistics of gas price fluctuation to...

High-frequency market-making for multi-dimensional Markov processes

April 3, 2013 Comments (0)

In this paper we complete and extend our previous work on stochastic control applied to high frequency market-making with inventory constraints and directional bets. Our new model admits several state variables (e.g. market spread, stochastic volatility and intensities of market orders) provided the full system is Markov. The solution of the corresponding HJB equation is exact in the case of zero inventory risk. The inventory risk enters into play in two ways: a path-dependent penalty based on...

Do wealth distributions follow power laws? Evidence from "rich lists"

April 3, 2013 Comments (0)

We use data on wealth of the richest persons taken from the "rich lists" provided by business magazines like Forbes to verify if upper tails of wealth distributions follow, as often claimed, a power-law behaviour. The data sets used cover the world's richest persons over 1996-2012, the richest Americans over 1988-2012, the richest Chinese over 2006-2012 and the richest Russians over 2004-2011. Using a recently introduced comprehensive empirical methodology for detecting power laws, which allows...

An Information-Theoretic Test for Dependence with an Application to the Temporal Structure

April 3, 2013 Comments (0)

Information theory provides ideas for conceptualising information and measuring relationships between objects. It has found wide application in the sciences, but economics and finance have made surprisingly little use of it. We show that time series data can usefully be studied as information -- by noting the relationship between statistical redundancy and dependence, we are able to use the results of information theory to construct a test for joint dependence of random variables. The test is...