Why not set up some public-service robot traders to counteract the behavior of traders when it snowballs into extreme moves? I show a blueprint of how this can be accomplished taking advantage of the theory of complex systems.

This essay asserts that the mutual gains accruing from the exchange of goods between siblings can moderate the famous parent-offspring conflict, an issue of interest in evolutionary biology. The rationale combines basic concepts of economics and behavioral genetics, and fills in the gaps of...

Undergraduates were given a battery of psychological tests to gauge their degree of antisocial personality traits (psychopathy, Machiavellianism and nihilism). The students also responded to questionnaires to assess their attitudes toward risk and intertemporal choice. Biological attributes of...

Group thinking is the notion that animals do those things that maximize the chance of survival of their species. It is wrong because natural selection does not favor what is good for the group or the species; it favors what is good for the individual. Here, I show through examples how group...

By combining basic concepts from economics and genetic economics, I elaborate a rationale for the mutual gains from the exchange of goods between siblings to moderate the famous parent-offspring conflict, an issue of interest for evolutionary psychology. The rationale also fills in the gaps of...

We examine the relationship between the US current account deficit, the international value of the dollar, and the dollar reserves of foreign central banks. We find that the international value of the dollar impacts the US current account and also that dollar depreciations are accompanied by...

Financial economists usually assess market efficiency in absolute terms. This is to be viewed as a shortcoming. One way of dealing with the relative efficiency of markets is to resort to the efficiency interpretation provided by algorithmic complexity theory. We employ such an approach in order...

If stock markets are complex, monetary policy and even financial regulation may be useless to prevent bubbles and crashes. Here, we suggest the use of robot traders as an anti-bubble decoy. To make our case, we put forward a new stochastic cellular automata model that generates an emergent stock...

Based on long range dependence, some analysts claim that the exchange rate time series of the pound sterling and of an artificially extended euro have been locked together for years despite daily changes [1, 9]. They conclude that pound and euro are in practice the same currency. We assess the...

We carry out a statistical physics analysis of the flash crash of May 6, 2010 using data from the Dow Jones Industrial Average index sampled at a one-minute frequency from September 1, 2009 to May 31, 2010. We evaluate the hypothesis of a non-Gaussian Levy-stable distribution to model the data...