Is visitors’ attendance a fair indicator of a web site's quality? Internet sub-domains are usually characterized by power-law distributions of visits, thus suggesting a rich-get-richer process. If this is the case, the number of visits is not a relevant measure of quality. If, on the other...

We study various aspects of the self-organized critical phenomena. A continuous-energy model is analyzed using a self-consistent effective medium method. We find that energy is homogeneously and isotropically distributed in space. We have calculated analytically the critical energy, which is...

We study the scaling behavior in currency exchange rates. Our results suggest that they satisfy scaling with an exponent close to 0.5, but that it differs qualitatively from that of a simple random walk. Indeed price variations cannot be considered as independent variables and subtle...

Recommender systems help people cope with the problem of information overload. A recently proposed adaptive news recommender model [M. Medo, Y.-C. Zhang, T. Zhou, Europhys. Lett. <Emphasis Type="Bold">88, 38005 (2009)] is based on epidemic-like spreading of news in a social network. By means of agent-based...</emphasis>

We study simultaneous price drops of real stocks and show that for high drop thresholds they follow a power-law distribution. To reproduce these collective downturns, we propose a minimal self-organized model of cascade spreading based on a probabilistic response of the system elements to...

A binary game is introduced and analysed. N players have to choose one of the two sides independently and those on the minority side win. Players use a finite set of ad hoc strategies to make their decision, based on the past record. The analysing power is limited and can adapt when necessary....

We address the question of market efficiency using the Minority Game (MG) model. First we show that removing unrealistic features of the MG leads to models which reproduce a scaling behaviour close to what is observed in real markets. In particular we find that (i) fat tails and clustered...

We propose and study a simple model of dynamical redistribution of capital in a diversified portfolio. We consider a hypothetical situation of a portfolio composed of N uncorrelated stocks. Each stock price follows a multiplicative random walk with identical drift and dispersion. The rules of...

We study the risk criterion for investments based on the drawdown from the maximal value of the capital in the past. Depending on investor's risk attitude, thus his risk exposure, we find that the distribution of these drawdowns follows a general power law. In particular, if the risk exposure is...