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Critical dynamics on the market

May 25 , 13:00 14:00

Speaker: Prof. Ryszard Kutner
Affiliation: Institute of Experimental Physics, Faculty of Physics, University of Warsaw, Warsaw, Poland
Link to MSTeam meeting

We develop critical stochastic dynamics in the market of competing firms induced by state intervention as a new perspective for combining nonlinear statistical physics and quantitative economics. We built critical stochastic dynamics because we noticed the slowing down effect on the company market for the first time. We model the influence of state interventionism by using three reasons: the probability of intervention, its effectiveness, and the market’s activity. The level of technology is here the primary criterion for the company’s survival on the market. We demonstrate criticality at the second-order phase transition in the steady states of the market. We argue that we are dealing with a kind of dissipative spatial-temporal structure. Finally, we apply our approach to discussing critical phenomena in the empirical data of the OECD countries.

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