André Vilela
London E1W 1YW, UK
Portland, ME 04101
2nd floor
11th floor
Boston, MA 02115
London E1W 1LP, UK
Talk recording
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.