arXiv subjects

H. Eugene Stanley

Publications and source records attributed to H. Eugene Stanley.

At least 19 recordsLinked to original sources

arXiv2024

Three-state Opinion Dynamics for Financial Markets on Complex Networks

This work investigates the effects of complex networks on the collective behavior of a three-state opinion formation model in economic systems. Our model considers two distinct types of investors in financial markets: noise traders and fundamentalists. Financial states evolve via probabilistic dynamics that include economic strategies with local and global influences. The local majoritarian opinion drives noise traders' market behavior, while the market index influences the financial decisions of fundamentalist agents. We introduce a level of market anxiety $q$ present in the decision-making process that influences financial action. In our investigation, nodes of a complex network represent market agents, whereas the links represent their financial interactions. We investigate the stochastic dynamics of the model on three distinct network topologies, including scale-free networks, small-world networks and Erd{ö}s-Rényi random graphs. Our model mirrors various traits observed in real-world financial return series, such as heavy-tailed return distributions, volatility clustering, and short-term memory correlation of returns. The histograms of returns are fitted by coupled Gaussian distributions, quantitatively revealing transitions from a leptokurtic to a mesokurtic regime under specific economic heterogeneity. We show that the market dynamics depend mainly on the average agent connectivity, anxiety level, and market composition rather than on specific features of network topology.

physics.soc-ph↗

arXiv2024

Local dominance unveils clusters in networks

Clusters or communities can provide a coarse-grained description of complex systems at multiple scales, but their detection remains challenging in practice. Community detection methods often define communities as dense subgraphs, or subgraphs with few connections in-between, via concepts such as the cut, conductance, or modularity. Here we consider another perspective built on the notion of local dominance, where low-degree nodes are assigned to the basin of influence of high-degree nodes, and design an efficient algorithm based on local information. Local dominance gives rises to community centers, and uncovers local hierarchies in the network. Community centers have a larger degree than their neighbors and are sufficiently distant from other centers. The strength of our framework is demonstrated on synthesized and empirical networks with ground-truth community labels. The notion of local dominance and the associated asymmetric relations between nodes are not restricted to community detection, and can be utilised in clustering problems, as we illustrate on networks derived from vector data.

physics.soc-ph↗

arXiv2023

Entropy Production on Cooperative Opinion Dynamics

As one of the most widespread social dynamics, cooperative behavior is among the most fascinating collective phenomena. Several animal species, from social insects to human beings, feature social groups altruistically working for a common benefit. This collaborative conduct pervades the actions and opinions of individuals, yielding strategic decision-making between political, religious, ethnic, and economic social puzzles. Here, we explore how cooperative behavior phenomena impact collective opinion dynamics and entropy generation in social groups. We select a random fraction $f$ of community members as collaborative individuals and model the opinion dynamics using a social temperature parameter $q$ that functions as a social anxiety noise. With probability $q$, regular individuals oppose their companions about a social decision, assuming group dissent. Collaborative agents experience a reduced effective social noise $μq$, where $0 < μ< 1$ is the social anxiety noise sensibility parameter that enhances social validation. We perform numerical simulations and mean-field analysis and find the system undergoes nonequilibrium order-disorder phase transitions with expressive social entropy production. Our results also highlight the effects of an individual social anxiety attenuation level in enhancing group consensus and inducing exuberant collective phenomena in complex systems.

cond-mat.stat-mech↗

arXiv2023

The evolution of k-shell in syndication networks reveals financial performance of venture capital institutions

Venture capital (VC) is a relatively newly emergent industry that is still subject to large uncertainties in China. Therefore, building a robust social network with other VC institutions is a good way to share information, various resources, and benefit from skill and knowledge complementarity to against risks. Strong evidences indicate that better networked VC institutions are of a better financial performance, however, most of previous works overlook the evolution of VC institutions and only focus on some simple topology indicators of the static syndication network, which also neglects higher-order network structure and cannot give a comprehensive evaluation. In this paper, based on VC investment records in the Chinese market, we construct temporal syndication networks between VC institutions year by year. As k-shell decomposition considers higher-order connection patterns, we employ k-shell as an evaluation of the influence of VC institutions in syndication networks. By clustering time series of k-shell values, the VC institutions in China fall into five groups that are quite different from each other on financial performances and investment behaviors. This, in turn, proves the power of our method that only based on proper sequential network properties, we can reveal their financial investment performance. Compared to other network centrality measurements, k-shell is a better indicator that is indicated by a smaller intra-group distance and a larger inter-group distance.

physics.soc-ph↗

arXiv2022

Emergence of scaling in dockless bike-sharing systems

Fundamental laws of human mobility have been extensively studied, yet we are still lacking a comprehensive understanding of the mobility patterns of sharing conveyances. Since travellers would highly probably no longer possess their own conveyances in the near future, the interplay between travellers and sharing bikes is a central question for developing more sustainable transportation. Dockless bike-sharing systems that record detailed information of every trip provide us a unique opportunity for revealing the hidden patterns behind riding activities. By treating each bike as an individual entity, we reveal that distributions of mobility indicators of bikes are quite different from humans; and mobility patterns are even inconsistent across cities. All above discrepancies can be well explained by a choice model that is characterized by a universal scaling. Our model unveils that instead of choosing among the newest bikes, the distribution of rank values of selected bikes on usage condition manifests a truncated power-law and is quite stable across several cities despite various diversities. Our framework would have broad implications in sharing economy and contribute towards developing a greener, healthier, and more sustainable future city.

physics.soc-ph↗

arXiv2022

Multiple-scale integro-differential perturbation method for generic non-Markovian environments

Non-Markovianity may significantly speed up quantum dynamics when the system interacts strongly with an infinite large reservoir, of which the coupling spectrum should be fine-tuned. The potential benefits are evident in many dynamics schemes, especially the continuous-time quantum walk. Difficulty exists, however, in producing closed-form solutions with controllable accuracy against the complexity of memory kernels. Here, we introduce a new multiple-scale perturbation method that works on integro-differential equations for general study of memory effects in dynamical systems. We propose an open-system model in which a continuous-time quantum walk is enclosed in a non-Markovian reservoir, that naturally corresponds to an error correction algorithm scheme. By applying the multiple-scale method we show how emergence of different time scales is related to transition of system dynamics into the non-Markovian regime. We find that up to two long-term modes and two short-term modes exist in regular networks, limited by their intrinsic symmetries. In addition to the effective approximation by our perturbation method on general forms of reservoirs, the speed-up of quantum walks assisted by non-Markovianity is also confirmed, revealing the advantage of reservoir engineering in designing time-sensitive quantum algorithms.

quant-ph↗

arXiv2022

Opinion Dynamics in Financial Markets via Random Networks

We investigate the financial market dynamics by introducing a heterogeneous agent-based opinion formation model. In this work, we organize the individuals in a financial market by their trading strategy, namely noise traders and fundamentalists. The opinion of a local majority compels the market exchanging behavior of noise traders, whereas the global behavior of the market influences the fundamentalist agents' decisions. We introduce a noise parameter $q$ to represent a level of anxiety and perceived uncertainty regarding the market behavior, enabling the possibility for an adrift financial action. We place the individuals as nodes in an Erdös-Rényi random graph, where the links represent their social interaction. At a given time, they assume one of two possible opinion states $\pm 1$ regarding buying or selling an asset. The model exhibits such fundamental qualitative and quantitative real-world market features as the distribution of logarithmic returns with fat-tails, clustered volatility, and long-term correlation of returns. We use Student's t distributions to fit the histograms of logarithmic returns, showing the gradual shift from a leptokurtic to a mesokurtic regime, depending on the fraction of fundamentalist agents. We also compare our results with the distribution of logarithmic returns of several real-world financial indices.

q-fin.ST↗

arXiv2021

Community detection and portfolio optimization

Community detection methods can be used to explore the structure of complex systems. The well-known modular configurations in complex financial systems indicate the existence of community structures. Here we analyze the community properties of correlation-based networks in worldwide stock markets and use community information to construct portfolios. Portfolios constructed using community detection methods perform well. Our results can be used as new portfolio optimization and risk management tools.

q-fin.PM↗

arXiv2021

A new look at calendar anomalies: Multifractality and day of the week effect

Stock markets can become inefficient due to calendar anomalies known as day-of-the-week effect. Calendar anomalies are well-known in financial literature, but the phenomena remain to be explored in econophysics. In this paper we use multifractal analysis to evaluate if the temporal dynamics of market returns also exhibits calendar anomalies such as day-of-the-week effects. We apply the multifractal detrended fluctuation analysis (MF-DFA) to daily returns of market indices around the world for each day of the week. Our results indicate that individual days of the week are characterized by distinct multifractal properties. Monday returns tend to exhibit more persistent behavior and richer multifractal structures than other day-resolved returns. Shuffling the series reveals that multifractality arises both from a broad probability density function and from long-term correlations. From the time-dependent multifractal analysis we find that multifractal spectra for Monday returns are much wider than for other days during periods of financial crises. The presence of day-of-the-week effects in multifractal dynamics of market returns motivates further research on calendar anomalies from an econophysics perspective.

q-fin.ST↗

arXiv2021

A Matrix Factorization Model for Hellinger-based Trust Management in Social Internet of Things

The Social Internet of Things (SIoT), integration of the Internet of Things and Social Networks paradigms, has been introduced to build a network of smart nodes that are capable of establishing social links. In order to deal with misbehaving service provider nodes, service requestor nodes must evaluate their trustworthiness levels. In this paper, we propose a novel trust management mechanism in the SIoT to predict the most reliable service providers for each service requestor, which leads to reduce the risk of being exposed to malicious nodes. We model the SIoT with a flexible bipartite graph (containing two sets of nodes: service providers and service requestors), then build a social network among the service requestor nodes, using the Hellinger distance. Afterward, we develop a social trust model using nodes' centrality and similarity measures to extract trust behaviors among the social network nodes. Finally, a matrix factorization technique is designed to extract latent features of SIoT nodes, find trustworthy nodes, and mitigate the data sparsity and cold start problems. We analyze the effect of parameters in the proposed trust prediction mechanism on prediction accuracy. The results indicate that feedbacks from the neighboring nodes of a specific service requestor with high Hellinger similarity in our mechanism outperforms the best existing methods. We also show that utilizing the social trust model, which only considers a similarity measure, significantly improves the accuracy of the prediction mechanism. Furthermore, we evaluate the effectiveness of the proposed trust management system through a real-world SIoT use case. Our results demonstrate that the proposed mechanism is resilient to different types of network attacks, and it can accurately find the most proper and trustworthy service provider.

cs.LG↗

arXiv2021

Impacts of export restrictions on the global personal protective equipment trade network during COVID-19

The COVID-19 pandemic has caused a dramatic surge in demand for personal protective equipment (PPE) worldwide. Many countries have imposed export restrictions on PPE to ensure the sufficient domestic supply. The surging demand and export restrictions cause shortage contagions on the global PPE trade network. Here, we develop an integrated network model, which integrates a metapopulation model and a threshold model, to investigate the shortage contagion patterns. The metapopulation model captures disease contagion across countries. The threshold model captures the shortage contagion on the global PPE trade network. Results show that, the shortage contagion patterns are mainly decided by top exporters. Export restrictions exacerbate the shortages of PPE and cause the shortage contagion to transmit even faster than the disease contagion. Besides, export restrictions lead to ineffective and inefficient allocation of PPE around the world, which has no benefits for the world to fight against the pandemic.

physics.soc-ph↗

arXiv2020

Universal Urban Spreading Pattern of COVID-19 and Its Underlying Mechanism

Currently, the global situation of COVID-19 is aggravating, pressingly calling for efficient control and prevention measures. Understanding spreading pattern of COVID-19 has been widely recognized as a vital step for implementing non-pharmaceutical measures. Previous studies investigated such an issue in large-scale (e.g., inter-country or inter-state) scenarios while urban spreading pattern still remains an open issue. Here, we fill this gap by leveraging the trajectory data of 197,808 smartphone users (including 17,808 anonymous confirmed cases) in 9 cities in China. We find a universal spreading pattern in all cities: the spatial distribution of confirmed cases follows a power-law-like model and the spreading centroid is time-invariant. Moreover, we reveal that human mobility in a city drives the spatialtemporal spreading process: long average travelling distance results in a high growth rate of spreading radius and wide spatial diffusion of confirmed cases. With such insight, we adopt Kendall model to simulate urban spreading of COVID-19 that can well fit the real spreading process. Our results unveil the underlying mechanism behind the spatial-temporal urban evolution of COVID-19, and can be used to evaluate the performance of mobility restriction policies implemented by many governments and to estimate the evolving spreading situation of COVID-19.

physics.soc-ph↗

arXiv2020

Assessing the attraction of cities on venture capital from a scaling law perspective

Cities are centers for the integration of capital and incubators of invention, and attracting venture capital (VC) is of great importance for cities to advance in innovative technology and business models towards a sustainable and prosperous future. Yet we still lack a quantitative understanding of the relationship between urban characteristics and VC activities. In this paper, we find a clear nonlinear scaling relationship between VC activities and the urban population of Chinese cities. In such nonlinear systems, the widely applied linear per capita indicators would be either biased to larger cities or smaller cities depends on whether it is superlinear or sublinear, while the residual of cities relative to the prediction of scaling law is a more objective and scale-invariant metric. %(i.e., independent of the city size). Such a metric can distinguish the effects of local dynamics and scaled growth induced by the change of population size. The spatiotemporal evolution of such metrics on VC activities reveals three distinct groups of cities, two of which stand out with increasing and decreasing trends, respectively. And the taxonomy results together with spatial analysis also signify different development modes between large urban agglomeration regions. Besides, we notice the evolution of scaling exponents on VC activities are of much larger fluctuations than on socioeconomic output of cities, and a conceptual model that focuses on the growth dynamics of different sized cities can well explain it, which we assume would be general to other scenarios.

physics.soc-ph↗

arXiv2020

Majority-vote model with limited visibility: an investigation into filter bubbles

The dynamics of opinion formation in a society is a complex phenomenon where many variables play an important role. Recently, the influence of algorithms to filter which content is fed to social networks users has come under scrutiny. Supposedly, the algorithms promote marketing strategies, but can also facilitate the formation of filters bubbles in which a user is most likely exposed to opinions that conform to their own. In the two-state majority-vote model an individual adopts an opinion contrary to the majority of its neighbors with probability $q$, defined as the noise parameter. Here, we introduce a visibility parameter $V$ in the dynamics of the majority-vote model, which equals the probability of an individual ignoring the opinion of each one of its neighbors. For $V=0.5$ each individual will, on average, ignore the opinion of half of its neighboring nodes. We employ Monte Carlo simulations to calculate the critical noise parameter as a function of the visibility $q_c(V)$ and obtain the phase diagram of the model. We find that the critical noise is an increasing function of the visibility parameter, such that a lower value of $V$ favors dissensus. Via finite-size scaling analysis we obtain the critical exponents of the model, which are visibility-independent, and show that the model belongs to the Ising universality class. We compare our results to the case of a network submitted to a static site dilution, and find that the limited visibility model is a more subtle way of inducing opinion polarization in a social network.

physics.soc-ph↗

arXiv2020

Short-time Monte Carlo simulation of the majority-vote model on cubic lattices

We perform short-time Monte Carlo simulations to study the criticality of the isotropic two-state majority-vote model on cubic lattices of volume $N = L^3$, with $L$ up to $2048$. We obtain the precise location of the critical point by examining the scaling properties of a new auxiliary function $Ψ$. We perform finite-time scaling analysis to accurately calculate the whole set of critical exponents, including the dynamical critical exponent $z=2.027(9)$, and the initial slip exponent $θ= 0.1081(1)$. Our results indicate that the majority-vote model in three dimensions belongs to the same universality class of the three-dimensional Ising model.

cond-mat.stat-mech↗

arXiv2020

Unveiling the Physics of the Mutual Interactions in Paramagnets

In real paramagnets, there is always a subtle many-body contribution to the system's energy, which can be regarded as a small effective local magnetic field $B_{loc}$. Usually, it is neglected, since it is very small when compared with thermal fluctuations and/or external magnetic fields $B$. Nevertheless, as both the temperature $T \rightarrow$ 0K and $B \rightarrow$ 0T, such many-body contributions become ubiquitous. Here, employing the magnetic Grüneisen parameter $Γ_{mag}$ and entropy arguments, we report on the pivotal role played by the mutual interactions in the regime of ultra-low-$T$ and vanishing $B$. Our key results are: $i$) absence of a genuine zero-field quantum phase transition due to the presence of $B_{loc}$; $ii$) connection between the canonical definition of temperature and $Γ_{mag}$; and $iii$) possibility of performing adiabatic magnetization by only manipulating the mutual interactions. Our findings unveil unprecedented aspects emerging from the mutual interactions.

cond-mat.str-el↗

arXiv2020

History-dependent percolation on multiplex networks

The structure of interconnected systems and its impact on the system dynamics is a much-studied cross-disciplinary topic. Although various critical phenomena have been found in different models, the study on the connections between different percolation transitions is still lacking. Here we propose a unified framework to study the origins of the discontinuous transitions of the percolation process on interacting networks. The model evolves in generations with the result of the present percolation depending on the previous state and thus is history-dependent. Both theoretical analysis and Monte Carlo simulations reveal that the nature of the transition remains the same at finite generations but exhibits an abrupt change for the infinite generation. We use brain functional correlation and morphological similarity data to show that our model also provides a general method to explore the network structure and can contribute to many practical applications, such as detecting the abnormal structures of human brain networks.

cond-mat.stat-mech↗

arXiv2020

An Analytical Solution to the $k$-core Pruning Process

$k$-core decomposition is widely used to identify the center of a large network, it is a pruning process in which the nodes with degrees less than $k$ are recursively removed. Although the simplicity and effectiveness of this method facilitate its implementation on broad applications across many scientific fields, it produces few analytical results. We here simplify the existing theoretical framework to a simple iterative relationship and obtain the exact analytical solutions of the $k$-core pruning process on large uncorrelated networks. From these solutions we obtain such statistical properties as the degree distribution and the size of the remaining subgraph in each of the pruning steps. Our theoretical results resolve the long-lasting puzzle of the $k$-core pruning dynamics and provide an intuitive description of the dynamic process.

physics.soc-ph↗