Seminar talk: Efficiency of Random strategies and Self-Organized Criticality in Socio-Economic Systems

On occasion of the Ig Nobel Night at UiO, Professor Andrea Rapisarda (Università di Catania, Italy) will give a seminar talk on:

Efficiency of Random strategies and Self-Organized Criticality in Socio-Economic Systems

Abstract:

The lecture will consist of two parts. In the first one I will show how, inspired by physics examples, random strategies can be successfully applied to face problems of inefficient dynamics in social systems.
In the second part I will apply random strategies to financial markets and present a model, characterized by self-organized criticality, which is able to generate endogenously a realistic price dynamics and to reproduce well-known stylized facts. In a community of heterogeneous traders, the spreading of information, based on a realistic imitative behavior, drives contagion and causes market fragility. It will be shown how the introduction of a small number of random traders is able to stabilize the market and produce beneficial effects both at micro and at macro level.


Everybody is welcome!