Alessio Emanuele Biondo

• Ph.D., M.Sc.
• Professor (Associate) at University of Catania

Purpose The purpose of this paper is twofold:- first, to introduce an innovative model of financial order book, less simplified than the existing literature and still able to replicate all statistical features of true markets;- second, to simulate realistically the effects of policies aimed to reduce the instability of financial markets. Design/m...

This paper presents an agent-based model of the financial order book, and investigates whether the volatility of market prices can be reduced by means of specific policy interventions. The model is able to replicate the salient stylized facts of empirical data. Simulations show how market volatility is affected by two types of factors: individual c...

This paper presents a simulative model of a financial market, based on a fully operating order book with limit and market orders. The heterogeneity of traders is characterized not only with regards to their trading rules, but also by introducing a behavioral individual risk aversion and a learning ability influencing the process of expectations for...

Individual preferences and wage differentials are generally interpreted as determinants of agents’ migration decisions in search of job opportunities. Literature about migration flows usually describes both theoretical and empiricalevidence for either temporary or permanent movements of workers, but brain drainmigration has its own peculiar charact...

We present a financial market model, characterized by self-organized criticality, that is able to generate endogenously a realistic price dynamics and to reproduce well-known stylized facts. We consider a community of heterogeneous traders, composed by chartists and fundamentalists, and focus on the role of informative pressure on market participan...

Recent financial crises have revealed tensions in interbank markets, challenging conventional monetary policies and financial stability. After the sovereign debt crisis, shifts in banks’ funding preferences led to numerous issues in payment systems and European financial integration. Through this study, we analyzed the impact of firms’, households’...

This paper introduces the special issue on two editions of the Workshop on Economic Science with Heterogeneous Interacting Agents, 24.5th Milan, 2021 (wehia 2021) and 25th Catania, 2022 (wehia 2022).

In this paper we review some recent results about the efficiency of random strategies for complex systems. Inspired by physical systems, we discuss several successful examples of the beneficial role of randomness in the realm of socio-economic systems. We dedicate this paper to Alfredo Ferro to celebrate his distinguished career.

Cultural activities are greatly beneficial to older individuals but, unfortunately, many still face significant barriers that limit their ability to enjoy the arts. To tackle this issue, we have analysed data from an Italian audience development and engagement program for seniors, which was implemented at local level. By using an agent-based model,...

Individual sports competitions provide a natural setting for examining the relative importance of talent and luck/chance in achieving success. The belief that success is primarily due to individual abilities and hard work rather than external factors is particularly strong in this context. Thus, individual talent is regarded as the most important –...

In this work, we address the beneficial role of noise in two different contexts, the human brain and financial markets. In particular, the similitude between the ability of financial markets to maintain in equilibrium asset prices is compared with the ability of the human nervous system to balance a stick on a fingertip. Numerical simulations of th...

Individual sports competitions provide a natural setting for examining the relative importance of talent and luck in achieving success. The belief that success is primarily due to individual abilities and hard work rather than external factors is especially strong in this context. Thus, individual talent is regarded as the most important – if not t...

In this paper we analyse the effects of information flows in cryptocurrency markets. We first define a cryptocurrency trading network, i.e. the network made using cryptocurrencies as nodes and the Granger causality among their weekly log returns as links, later we analyse its evolution over time. In particular, with reference to years 2020 and 2021...

The assessment of seismic risk in urban areas with high seismicity is certainly one of the most important problems that territorial managers have to face. A reliable evaluation of this risk is the basis for the design of both specific seismic improvement interventions and emergency management plans. Inappropriate seismic risk assessments may provid...

The assessment of seismic risk in urban areas with high seismicity is certainly one of the most important problems that territorial managers have to face. A reliable evaluation of this risk is the basis for the design of both specific seismic improvement interventions and emergency management plans. Unappropriate seismic risk assessments may provid...

In this paper we analyse the effects of information flows in cryptocurrency markets. We first define a cryptocurrency trading network, i.e. the network made using cryptocurrencies as nodes and the Granger causality among their weekly log returns as links, later we analyse its evolution over time. In particular, with reference to years 2020 and 2021...

In this paper we study tax evasion by means of a unified framework, based on a behavioral approach, where each individual decision with respect to tax compliance is driven by either personal evaluations of the available information, correlated to income and the perception of the quality of the public good, and social influences, derived by the know...

The assessment of seismic risk in urban areas with high seismicity is certainly one of the most important problems that territorial managers have to face. A reliable evaluation of this risk is the basis for the design of both specific seismic improvement interventions and emergency management plans. Unappropriate seismic risk assessments may provid...

This paper presents an agent-based model to study the effects of lockdown restrictions, due to epidemic prevention, on cultural consumption. Two kinds of cultural products, designed as ’popular’ and ’highbrow’, are taken into account. People preferences and choices on different cultural products are influenced by individual education and income; th...

It is a widespread belief that success is mainly due to innate qualities rather than external forces. This is particularly true in sports competitions, where individual talent is usually considered the main, if not the only, ingredient to reach success. In this study, we explore the limits of this belief by quantifying the relative weight of talent...

Disease outbreaks force the governments to rapid decisions. However, the stream of decision-making could be costly in terms of the democratic representativeness. The goal of the paper is to investigate the trade-off between pluralism of preferences and the time required to approach a decision. To this aim we develop and test a modified version of t...

Despite the existence of an extensive literature, no definitive conclusion seems to emerge on the extent to which minorities are guaranteed by democratic rules in political systems. This paper contributes to this debate by proposing a modified Heigselmann and Krauss two-dimensional model of preferences in order to capture the role of abstention on...

An amendment to this paper has been published and can be accessed via a link at the top of the paper.

It is a widespread belief that success is mainly due to innate qualities, rather than to external forces. This is particularly true in sport competitions, where individual talent is considered the only ingredient in order to reach success. In this study, we propose to explore the relative weight of talent and luck in individual sports through agent...

It is a widespread belief that success is mainly due to innate qualities, rather than to external forces. This is particularly true in sport competitions, where individual talent is usually considered the main, if not the only, ingredient in order to reach success. In this study, with the help of both real data and agent-based simulations, we explo...

We propose a novel data-driven framework for assessing the a-priori epidemic risk of a geographical area and for identifying high-risk areas within a country. Our risk index is evaluated as a function of three different components: the hazard of the disease, the exposure of the area and the vulnerability of its inhabitants. As an application, we di...

In this paper we present a simplified model of a proportional taxation system where citizens decide whether to pay taxes or evade them. We initially derive a dynamic equation for the fraction of evaders and then present both its critical points and equilibrium stable states for a well-mixed population and for a fixed audit probability. Our theoreti...

Disease outbreaks force the governments to rapid decisions to deal with. However, the rapid stream of decision-making could be costly in terms of the democratic representativeness. The aim of the paper is to investigate the trade-off between pluralism of preferences and the time required to approach a decision. To this aim we develop and test a mod...

This paper presents an agent‐based model to study museum attendance, with the final aim of evaluating how the rules on free admission affect charged visits. Heterogeneous agents of a population are assumed to make their choices over a bundle of goods and activities which include museum attendance along with other consumption and leisure‐time altern...

This paper presents an agent based model of a financial market with a real-time engine, whose operation replicates the official time schedule of Borsa Italiana S.p.A. Simulated time series are compared with empirical data at different time scales (ticks, 1 s, 1 min, 5 min) in order to check the compliance of the model with some stylized facts. The...

We present a new way of estimation of the role of chance in achieving success, by comparing the empirical data from 100-m dash competitions (one of the sports disciplines with the most stringent controls of external randomness), with the results of an agent-based computer model, which assumes that success depends jointly on the intrinsic talent of...

While wealth distribution in the world is highly skewed and heavy-tailed, human talent — as the majority of individual features — is normally distributed. In a recent computational study by Pluchino et al. [Talent vs luck: The role of randomness in success and failure, Adv. Complex Syst.21(03–04) (2018) 1850014], it has been shown that the combined...

We present a novel methodology in order to perform the epidemic risk assessment in terms of different factors which are useful to understand the different impact of an epidemic in different areas of a country. In particular we discuss the case of COVID-19 outbreak in Italy. We characterize each region of Italy by considering the available data on a...

This chapter presents results from a class of agent-based models describing a realistic financial order book, aiming to discuss some aspects related to market stability. Major empirical regularities of data are correctly replicated and simulations are used to infer possible policy implications. After a detailed explanation of model features, an app...

We present a new way of estimation of the role of chance in achieving success, by comparing the empirical data from 100-meter dash competitions (one of the sports disciplines with the most stringent controls of external randomness), with the results of an agent-based computer model, which assumes that success depends jointly on the intrinsic talent...

We introduce a simplified version (STvL) of the Talent versus Luck (TvL) model where only lucky events are present and verify that its dynamical rules lead to the same very large wealth inequality as the original model. We also derive some analytical approximations aimed to capture the mechanism responsible for the creation of such wealth inequalit...

Although interdisciplinarity is often touted as a necessity for modern research, the evidence on the relative impact of sectorial versus to interdisciplinary science is qualitative at best. In this paper we leverage the bibliographic data set of the American Physical Society to quantify the role of interdisciplinarity in physics, and that of talent...

This paper presents an agent-based model of a simple economic system where the personal satisfaction gained from public services and the perceived opinion of neighbors are shown to drive the individual decision about tax compliance. Results of simulations, consistent with existing literature on the topic, suggest a peculiar approach to face the pla...

Although interdisciplinarity is often touted as a necessity for modern research, the evidence on the relative impact of sectorial versus to interdisciplinary science is qualitative at best. In this paper we leverage the bibliographic data set of the American Physical Society to quantify the role of interdisciplinarity in physics, and that of talent...

Although interdisciplinarity is often touted as a necessity for modern research, the evidence on the relative impact of sectorial versus to interdisciplinary science is qualitative at best. In this paper we leverage the bibliographic data set of the American Physical Society to quantify the role of interdisci-plinarity in physics, and that of talen...

We review recent numerical results on the role of talent and luck in getting success by means of a schematic agent-based model. In general, the role of luck is found to be very relevant in order to get success, while talent is necessary but not sufficient. Funding strategies to improve the success of the most talented people are also discussed.

We review recent numerical results on the role of talent and luck in getting success by means of a schematic agent-based model. In general the role of luck is found to be very relevant in order to get success, while talent is necessary but not sufficient. Funding strategies to improve the success of the most talented people are also discussed.

This paper presents a simple agent-based model of an economic system, populated by agents playing different games according to their different view about social cohesion and tax payment. After a first set of simulations, correctly replicating results of existing literature, a wider analysis is presented in order to study the effects of a dynamic-ad...

The largely dominant meritocratic paradigm of highly competitive Western cultures is rooted on the belief that success is due mainly, if not exclusively, to personal qualities such as talent, intelligence, skills, efforts or risk taking. Sometimes, we are willing to admit that a certain degree of luck could also play a role in achieving significant...

We propose a novel modelization of the party formation process, in which citizens' private opinions are described by means of continuous fuzzy profiles. Those citizens who show a high level of commitment become politicians, and create a public profile of political tolerance that extends their private profile. The main goal of this first paper is to...

In this paper we study the impact of news media and public surveys on the electoral campaigns for political competitions. We present an agent-based model that addresses the effective influence of surveys in orienting the opinions of voters before elections. The dynamics of electoral consensus is studied as a function of time by investigating differ...

In this paper we study the impact of news media and public surveys on the electoral campaigns for political competitions. We present an agent-based model that addresses the effective influence of surveys in orienting the opinions of voters before elections. The dynamics of electoral consensus is studied as a function of time by investigating differ...

In this paper we present a multilayer network model with contagion dynamics which is able to simulate the spreading of information and the transactions phase of a typical financial market. A rudimental order book dynamics is embedded in a framework where the trading decisions of investors and the information dynamics occur in two separated layers w...

Purpose Discrimination and hostility in the workplace prevents homosexual workers from performing their core functions on the job. Moreover, it introduces unnecessary costs by increasing absenteeism, lowering productivity, and fostering a less motivated, less entrepreneurial, and less committed workforce. By means of an agent-based model, the autho...

We introduce a new Self-Organized Criticality (SOC) model for simulating price evolution in an artificial financial market, based on a multilayer network of traders. The model also implements, in a quite realistic way with respect to previous studies, the order book dynamics, by considering two assets with variable fundamental prices. Fat tails in...

We introduce a new Self-Organized Criticality (SOC) model for simulating price evolution in an artificial financial market, based on a multilayer network of traders. The model also implements, in a quite realistic way with respect to previous studies, the order book dy- namics, by considering two assets with variable fundamental prices. Fat tails i...

We present a simple order book mechanism that regulates an artificial financial market with self-organized criticality dynamics and fat tails of returns distribution. The model shows the role played by individual imitation in determining trading decisions, while fruitfully replicates typical aggregate market behavior as the “self-fulfilling prophec...

We present a simple order book mechanism that regulates an artificial financial market with self-organized criticality dynamics and fat tails of returns distribution. The model shows the role played by individual imitation in determining trading decisions, while fruitfully replicates typical aggregate market behavior as the "self-fulfilling prophec...

We present a graph-theoretic model of consumer choice, where final decisions are shown to be influenced by information and knowledge, in the form of individual awareness, discriminating ability, and perception of market structure. Building upon the distance-based Hotelling's differentiation idea, we describe the behavioral experience of several pro...

In this paper, making use of recent statistical physics techniques and models, we address the specific role of randomness in financial markets, both at the micro and the macro level. In particular, we review some recent results obtained about the effectiveness of random strategies of investment, compared with some of the most used trading strategie...

The idea that lies beneath organic food production is founded on high quality of ingredients and scrupulously natural processes in order to obtain products more genuine than the “usual” industrial standard food. As a matter of fact, however, the production of organic food can be mimicked by industrial production by means of marketing. Moreover, con...

This paper shows the direct linkage existing between the environmental sustainability and the diffusion of organic agriculture. The reason is that the environmental impact of organic agriculture is different and somehow less polluting than industrial (let us say, traditional) one. Moreover, the former delivers also healthier food, according to part...

Building on similarities between earthquakes and extreme financial events, we use a self-organized criticality-generating model to study herding and avalanches dynamics in financial markets. We consider a community of interacting investors, distributed on a small world network, who bet on the bullish (increasing) or bearish (decreasing) behavior of...

In this paper we explore the specific role of randomness in financial markets, inspired by the beneficial role of noise in many physical systems and in previous applications to complex socio- economic systems. After a short introduction, we study the performance of some of the most used trading strategies in predicting the dynamics of financial mar...

In this paper we focus on the beneficial role of random strate-gies in social sciences by means of simple mathematical and computational models. We briefly review recent results obtained by two of us in previous contributions for the case of the Peter principle and the efficiency of a Parlia-ment. Then, we develop a new application of random strate...

The Brain Drain phenomenon is particularly heterogeneous and is characterized by peculiar specifications. It influences the economic fundamentals of both the country of origin and the host one in terms of human capital accumulation. Here, the brain drain is considered from a microeconomic perspective: more precisely we focus on the individual ratio...

One of the most recurrent insights about international migration is the link with development and dynamic perspectives of a country. A comprehensive approach to this topic is essential to put migration at the core of any policy-maker’s agenda as it must be seen as an opportunity in both origin and destination countries, rather than as a threat. You...

The environmental impact of touristic production is different from that of other productions. Touristic services are produced the same as every other private good by profit maximising firms, but part of the production itself consists of environmental improvements. The naturalistic resource is somehow the core of any given touristic service because...

Return migration is the positive counterpart of brain drain. The effects of the brain drain in Italy could be negative:this paper showsthat highly skilled migrants decide not to return to their native country.

This paper aims to survey the literature about the Law of One Price in order to document its failure in terms of actual application. After a brief theoretical overview, which starts from classical economists' thought, the reported literature has been classified on the basis of three main streams: pricing-to-market (also considering investigations a...

We all know that information about products drives consumption choices. But knowledge comes first. Without the correct consciousness about products, even with complete information inefficient outcomes may result. The adverse selection problem is revisited in this paper, successfully interpreting what happens any time when, even if a contract is com...

A sustainable growth rate – i.e. a growth rate which allows economy to expand without compromising the equilibrium of the natural system – is one of the most important and stimulating topics in growth literature. In this paper two findings will be presented. First of all, a brief discussion of both concepts – growth and development – is pre...

Return migration is the positive counterpart of brain drain. Human capital accumulation increases in a country if skilled agents go back home after a period spent working abroad. Effects of brain drain in Italy could be negative as highly skilled migrants decide not to come back to their native country. Our simple model shows that if preference for...

The paper analyzes permanent aspects of brain drain phenomenon referred to Italian highly skilled workers. The analysis regards a sample of post-doctoral graduates, medical specialists, and academic researchers. Results suggest that brain drain in Italy is not temporary, as demonstrated by Dustmann-Weiss (2007) for UK case. A modified version of th...

This paper tries to find a new perspective by which environmental economics and growth theory can meet each other within the relationship between economic growth and sustainable development. The importance of the environment as both source and constraint for life, advises that it should appear in every model of economic growth in order to obtain us...