Modelling value bubbles in an attention based economy

Cecilie Toftdahl Olesen and Kim Sneppen ()
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Cecilie Toftdahl Olesen: Niels Bohr Institute, Copenhagen University
Kim Sneppen: Niels Bohr Institute, Copenhagen University

The European Physical Journal B: Condensed Matter and Complex Systems, 2020, vol. 93, issue 3, 1-5

Abstract: Abstract Exchange of products, ideas, and memes is ubiquitous across history and societies. Repeated transactions occasionally leads to “bubbles” where something becomes disproportionately valuable. Remarkably little has been done to explore this highly non-equilibrium aspect of economic activity. We suggest to view “bubble dynamics” in terms of a market of memory and attention. We introduce an agent based model where a positive feedback acting on recent memories is counteracted by a slower negative feedback. We discuss the model in the context of fashion cycles and financial bubbles. Graphical abstract

Keywords: Statistical; and; Nonlinear; Physics (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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DOI: 10.1140/epjb/e2020-100449-9

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