Financial markets reflect the economic activity of nations, industries, companies, and societies. The housing market crash, COVID-19 pandemic, the recent high inflation indexes, and cryptocurrency frenzy illustrate the decisive influence of such systems in modern culture. This work employs the majority-vote opinion model within the complex network's framework to describe financial index evolution in stock markets. The majority-vote dynamics consist of a multi-state opinion formation model proposed to investigate and comprehend collective social phenomena under the effects of a social noise parameter. This work considers that a financial market mainly comprises two categories of investors: noise traders and fundamentalists – the former invest based on their acquaintances, while the latter act based on the market index. The model reproduces real-world market features for a finite level of social anxiety, denoted by a social temperature, and for a small number of interacting fundamentalist agents in random networks.
About the speaker
About the speaker
André L. M. Vilela (Ph.D. Physics) is an Associate Professor of Physics and the principal investigator of the Center and Laboratory for Simulation on Complex Systems at the University of Pernambuco, Recife, Brazil. Over the years, he has investigated the Physics of Complex Systems, with a special interest in the dynamics of interacting agent-based models, statistical mechanics, phase transitions, critical phenomena, and finite-size scaling analysis associated with opinion dynamics, financial markets, and complex network theory, including applications to data characterization, network resilience, and blockchain technology. His research focuses on unveiling the underlying mathematical mechanisms that drive the behavior of interacting constituents within the complex network's framework and how their individual behavior promotes active collective phenomena in social and economic systems.
André L. M. Vilela (Ph.D. Physics) is an Associate Professor of Physics and the principal investigator of the Center and Laboratory for Simulation on Complex Systems at the University of Pernambuco, Recife, Brazil. Over the years, he has investigated the Physics of Complex Systems, with a special interest in the dynamics of interacting agent-based models, statistical mechanics, phase transitions, critical phenomena, and finite-size scaling analysis associated with opinion dynamics, financial markets, and complex network theory, including applications to data characterization, network resilience, and blockchain technology. His research focuses on unveiling the underlying mathematical mechanisms that drive the behavior of interacting constituents within the complex network's framework and how their individual behavior promotes active collective phenomena in social and economic systems.
