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” »
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).
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” »
The most active and well known scientists contributing towards FuturICT project have organized their ideas into few articles, which discuss the current situation in contemporary complex social system modeling. These articles we published in a special issue of “The European Physical Journal Special Topics”. Most of the articles are available for free, thus we invite you to familiarize yourselves with them.
Econophysics is not a very well known interdisciplinary field of research in Lithuania. There are very few Lithuania based scientists who are related to this very young and rapidly developing branch of Physics. Therefore we, being ones of the few, feel an obligation to introduce Econophysics to the other scientists, businessmen and the whole broader society. In this text we will discuss the basic ideas, current trends and the most common problems relevant to the field of Econophysics.
The name of Econophysics implies the application of physics, mostly the methods taken from Statistical Physics, to the Economics. Though until recently most of the econophysicists used to focus on the financial markets. Currently the field is expanding very rapidly and now concerns something more than just regular Economics or Finance – many physicists now attempt to tackle problems in the other social sciences. For these broader approaches there are other overlapping terms including Sociophysics, Physics of Risk, Physics of Socio-Economic Systems and other.
At this point we would like to stop the discussion on the use of the terminology. Recall that the aim of this text is somewhat different from that. We aim to familiarize you with the Econophysics! Continue reading “Vygintas Gontis: Econophysics – brand new outlook into social sciences” »
Topic: “Agent-based Versus Macroscopic Modeling of Competition and Business Processes in Economics and Finance”
Speaker: dr. Vygintas Gontis
Briefly: The talk will be focused on the agent-based and stochastic modelling done by the Department of the Theory of Processes and Structures of the VU ITPA.
When? 6th of November, 17:00.
Where? VU Faculty of Mathematics and Informatics (Naugarduko g. 24, Vilnius), 400 auditorium.
Organized by: Department of the Mathematical Analysis of the VU MIF.