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Physics of fashion fluctuations

Author

Listed:
  • Donangelo, R.
  • Hansen, A.
  • Sneppen, K.
  • Souza, S.R.

Abstract

We consider a market where many agents trade different types of products with each other. We model development of collective modes in this market, and quantify these by fluctuations that scale with time with a Hurst exponent of about 0.7. We demonstrate that individual products in the model occasionally become globally accepted means of exchange, and simultaneously become very actively traded. Thus collective features similar to money spontaneously emerge, without any a priori reason.

Suggested Citation

  • Donangelo, R. & Hansen, A. & Sneppen, K. & Souza, S.R., 2000. "Physics of fashion fluctuations," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 287(3), pages 539-545.
    • Handle: RePEc:eee:phsmap:v:287:y:2000:i:3:p:539-545
    DOI: 10.1016/S0378-4371(00)00391-5
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    References listed on IDEAS

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    1. Bak, P. & Paczuski, M. & Shubik, M., 1997. "Price variations in a stock market with many agents," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 246(3), pages 430-453.
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    5. Thomas Lux & Michele Marchesi, 1999. "Scaling and criticality in a stochastic multi-agent model of a financial market," Nature, Nature, vol. 397(6719), pages 498-500, February.
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    7. R. Donangelo & K. Sneppen, 1999. "Self-organization of value and demand," Papers cond-mat/9906298, arXiv.org, revised Apr 2000.
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    Full references (including those not matched with items on IDEAS)

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