Recently while zapping over TV channels one program on the Discovery Science channel caught my attention. So have started watching “Weird connections” episode “Law of the Urinal” out of pure general interest. Yet after finishing watching it I thought that it should prove to be very interesting in a context of Physics of Risk. Thus I would like to encourage you to watch it on the Discovery Science channel (as far as I know it is being shown again from time to time) or on the vimeo.com website.
The book by George A. Akerlof and Robert J. Shiller “Animal Spirits, How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism”  has inspired me to share with you these thoughts. John Maynard Keynes introduced the term “Animal spirits” in 1936 to describe the instincts, proclivities and emotions that ostensibly influence and guide human behavior in business and so impact the economic outcome and development. G. A. Akerlof and R. J. Shiller provide in this book evidence that contemporary theory of economics based on the hypotheses of efficient market and rational expectation fails to explain economic processes in the periods of global crises. They further develop the term of Animal Spirits seeking to explain the evolution of global economy in the periods of crises and depression and looking for the appropriate measures how to overcome the economic slump. Continue reading “Vygintas Gontis: “Animal Spirits” – the old term of economics forcing us to reevaluate contemporary theories” »
In the second half of the XIXth century physicists, of whom probably the most well known are Maxwell and Boltzman, worked on the explanation of empirically discovered laws of thermodynamics. While working on this problem they developed a simple model to reproduce the collisions of particles in the ideal gasses. This simple model allowed to analytically derive the distribution of energy and velocities in gasses and to lay foundations for the statistical physics. In the context of Physics of Risk it is worthwhile to mention that Maxwell and Boltzman relied not only on the empirical works by other physicists, but also on the demographical data! Boltzmann even wrote that “molecules are like so many individuals, having the most various states of motion” [1, 2]. Inspired by this quote we will briefly review, while relying on , some of the simplest kinetic models and their applications to modelling of socio-economic systems. Continue reading “Elementary kinetic exchange models” »
For the first time in history of the Cafe Scientifique organized by Student’s Scientific Association of Faculty of Physics of Vilnius University the event was recorded on the video (special thanks to the webseminarai.lt team)! Which very useful to us as we can now share for all people who are interested in the popular side of Physics of Risk. We invite everyone interested to view the video (though note that everything is presented in Lithuanian) Continue reading “Cafe Scientifique “Physics of Risk: the more physics, the less risk” video recording” »
Topic: “Physics of Risk: The more physics, the less risk”
Speaker: Aleksejus Kononovičius
Briefly: I will talk about the complexity of socio-economic systems and how physicists (and not only physicists) attempt to understand, describe and explain it. I will present some of the research done worldwide and also research done at VU ITPA.
When? 6th of November, 19:00.
Where? Cafe “Savas Kampas” (Vokiečių st. 4, Vilnius)
Organized by: VU Faculty of Physics Students Scientific Association.
Facebook event: here.
Slides: Download (without video; Lithuanian).
US based business and technology news website “Business Insider” reports that “They finally tested the prisoner’s dilemma on actual prisoners – and the results were not what you would expect”! Read more on businessinsider.com »
Collective behavior of the individuals in the complex socio-economic systems is influenced by their herding, group, behavior tendencies and their individual preferences. The herding tendencies imply the possibility to control the collective behavior. In this text we discuss this possibility through the context of Kirman’s agent-based herding model.
The possibility to control the collective behavior can be clearly seen by taking the social systems as a primary example. In this case we usually have a large uninformed population. Members of this population may not have the necessary skills (or information) to make certain decision, namely they cannot make independent decision on their own. So the uninformed individuals have to rely on the individuals with necessary skills (or information) for advice. They are usually a very small part of the society, yet they are able to shape the behavior on the collective level. Actually this is confirmed by the experiments . Thus we see that the possibility to control the collective behavior is not very unrealistic idea, and therefore it is very interesting topic to be studied. Continue reading “A. Kononovicius, I. Kazakevicius: Impact of the controlled agents on the dynamics of the Kirman model” »