Influence of Local Interactions in the Bak-Sneppen Model and Economic Applications
arXiv:cond-mat/0503421 · doi:10.1016/j.physa.2005.09.061
Abstract
In the present work we extend the Bak-Sneppen model for biological evolution by introducing local interactions between species. This ``environmental'' perturbation can modify the intrinsic fitness of each element of the ecology, leading to higher survival probability, even for the less fit. While the system still self-organizes toward a critical state, the distribution of fitness broadens, losing the classical step-function shape. A possible application in economics is discussed, where firms are represented like evolving species linked by mutual interests.
16 pages, 6 figures, Physica A, in press
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- Scale-free avalanche dynamics in the stock market
- Replicating financial market dynamics with a simple self-organized critical lattice model
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- On Rank Driven Dynamical Systems