Physical modeling of order-book and opinion dynamics (09.3.3-LMT-K-712-02-0026)
This research is funded by the European Social Fund.
The idea to apply tools from physics to social systems is not novel, but until 1980s it was mostly social scientists who took inspiration from physics and not the other way around. A big road block for physicists was difficulties in conducting social experiments as well as lack of empirical data. But everything changed with the worldwide computerization, which enabled researchers to obtain significant amounts of social data. The first studies conducted by physicists revealed that social systems exhibit statistical patterns reminiscent of physical systems in critical state. In recent decades, on this foundation “econophysics” and “sociophysics” were built.
Despite the four decades since the first works, the big breakthrough in modeling of social systems is still to come. Although there are numerous models, they have significant drawbacks. Some lack realism and compatibility with social sciences. Some are too sophisticated. Most are usually able to explain only a small set of empirical facts. So far there are no “ideal” models.
During the project we will aim to move towards the “ideal” model. We will introduce discrete order book dynamics into the earlier proposed continuous agent-based financial market model. This model will be also further generalized to model social opinion dynamics. While working on the new models we will take compatibility with theories from social sciences as well as empirical data into account.
Research fellow, dr. Aleksejus Kononovičius, who already has experience in econophysics, will aim to apply his skills to sociophysics.
Highly qualified supervisor, dr. Julius Ruseckas, will use his broad physical outlook and experience to guide him in this venture.
During the project we will look for and foster ties with foreign interdisciplinary research groups. The experience obtained during the project will be useful to create high-level interdisciplinary research group in Lithuania, as well as for the future international collaboration projects.
Research fellow: dr. Aleksejus Kononovičius
Fellowship supervisor: dr. Julius Ruseckas