Generalized Lotka-Volterra (GLV) models extending the (70 year old) logistic equation to stochastic systems consisting of a multitude of competing auto-catalytic components lead to power distribution laws of the (100 year old) Pareto-Zipf type. In particular, when applied to economic systems,...

We develop a novel approach to peer pressure and Generalised Lotka-Volterra (GLV) models that builds on the development of a simple Langevin equation that characterises stochastic processes. We generalise the approach to stochastic equations that model interacting agents. The agent models...

We review some approaches to the understanding of fluctuations of financial asset prices. Our approach builds on the development of a simple Langevin equation that characterises stochastic processes. This provides a unifying approach that allows first a straightforward description of the early...

Ising or Potts models of ferromagnetism have been widely used to describe locally interacting social or economic systems. We consider a related model, introduced by Sznajd to describe the evolution of consensus in a society. In this model, the opinion or state of any spins can only be changed...

We develop a model of trading orders based on opinion dynamics. The agents may be thought as the share holders of a major mutual fund rather than as direct traders. The balance between their buy and sell orders determines the size of the fund order (volume) and has an impact on prices and...

We analyse, following recent work of Roehner, changes in house prices for both the UK and Ireland. We conclude that prices in the UK/London have reached a tipping point and relative to inflation are set to fall over the next few years. House prices (again relative to inflation) in Ireland are...

A theory which describes the share price evolution at financial markets as a continuous-time random walk (Physica A 287 (2000) 468, Physica A 314 (2002) 749, Eur. Phys. J. B 27 (2002) 273, Physica A 376 (2000) 284) has been generalized in order to take into account the dependence of waiting...

A theory which describes the share price evolution at financial markets as a continuous time random walk has been generalized in order to take into account the dependence of waiting times t on price returns x. A joint probability density function φX,T(x,t), which uses the concept of a Lévy...

Using the Generalized Lotka Volterra model adapted to deal with mutiagent systems we can investigate economic systems from a general viewpoint and obtain generic features common to most economies. Assuming only weak generic assumptions on capital dynamics, we are able to obtain very specific...

We propose a route for the evaluation of risk based on a transformation of the covariance matrix. The approach uses a ‘potential’ or ‘objective’ function. This allows us to rescale data from different assets (or sources) such that each data set then has similar statistical properties in...