Analytical solution for a class of network dynamics with mechanical and financial applications

P. Krejčí, H. Lamba, S. Melnik, and D. Rachinskii
Phys. Rev. E 90, 032822 – Published 29 September 2014

Abstract

We show that for a certain class of dynamics at the nodes the response of a network of any topology to arbitrary inputs is defined in a simple way by its response to a monotone input. The nodes may have either a discrete or continuous set of states and there is no limit on the complexity of the network. The results provide both an efficient numerical method and the potential for accurate analytic approximation of the dynamics on such networks. As illustrative applications, we introduce a quasistatic mechanical model with objects interacting via frictional forces and a financial market model with avalanches and critical behavior that are generated by momentum trading strategies.

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  • Received 16 September 2013
  • Revised 18 June 2014

DOI:https://doi.org/10.1103/PhysRevE.90.032822

©2014 American Physical Society

Authors & Affiliations

P. Krejčí1, H. Lamba2, S. Melnik3, and D. Rachinskii4,5

  • 1Institute of Mathematics, Academy of Sciences of the Czech Republic, Prague, Czech Republic
  • 2Department of Mathematical Sciences, George Mason University, Fairfax, Virginia 22030, USA
  • 3MACSI, Department of Mathematics & Statistics, University of Limerick, Limerick, Ireland
  • 4Department of Applied Mathematics, University College Cork, Western Road, Cork, Ireland
  • 5Department of Mathematical Sciences, University of Texas at Dallas, Richardson, Texas 75080, USA

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Issue

Vol. 90, Iss. 3 — September 2014

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