ZiF Workshop

Equilibria in Markets, Strategic Interactions, and Complex Systems

Date: 16 – 19 July 2019
Convenors: Giorgio Ferrari (Bielefeld, GER), Frank Riedel (Bielefeld, GER), Jacco Thijssen (York, GBR)

The notion of equilibrium as a balanced state of opposing forces or interactions occurs in slightly different, yet related forms in Biology, Economics, Physics, and Business Administration. It is well known that this notion is of fundamental importance in many disciplines. For example, in Biology, equilibrium is a state of balance between several organisms that live in a certain environment, whereas in Physics it is the state of balance between opposite forces. In Economics, the notion of equilibrium has naturally appeared in different contexts and with different nuances.

This workshop gathered economic theorists, management scientists, mathematicians, and statistical physicists to discuss the different approaches to 'equilibrium' arising in financial markets, games, and complex systems. Next to an international group of top researchers, six younger participants presented their research.

The physicist Luciano Pietronero discussed a new approach to measure economic fitness and complexity. Inspired by Google's page rank algorithm, he proposed a nonlinear approach to measure the 'fitness' of an economy with the help of the complexity and diversity of its products and exports. This approach contrasts heavily with standard economic approaches to measure the economic power and development of a society, yet Pietronero showed convincingly how his measures are able to explain the rise of China, and the problems of other countries. Thomas Guhr showed how a random matrix approach that originates in physics can successfully be applied to the analysis of correlation matrices in financial markets.

An important topic of the conference was concerned with the various possible notions of equilibrium in complex dynamic interactions (games). The importance of market power and other impacts of traders on the market have been widely recognized for a long time. Yet, substantial advances in game-theoretic approaches to the theory of financial markets were made only recently. The workshop made substantial progress in the understanding of mean-field games and non-zero sum games of impulse control and optimal stopping and their numerics. A mean?field game is an efficient way to model the interaction of a large class of agents in complex dynamic environments. Recently, this research area has made substantial progress. For example, Luciano Campi, Ulrich Horst, and Haoyang Cao presented new discoveries for mean-field games with impulse-control, leader-follower structures, and absorption. Tiziano de Angelis was able to solve a class of non-zero sum stopping games with asymmetric information. Herbert Dawid presented results on multi-mode stochastic differential games. In a related vein, Jean-Paul Décamps and Maria Lavrutich studied real option games and related timing games. Kasper Larsen analyzed the impact of insider trading. Last not least, various contributions to the important topic of incomplete financial markets including a new approach to existence of equilibrium in continuous time by Gordan Zitkovic completed the successful workshop.

Giorgio Ferrari, Frank Riedel, Jacco Thijssen

Supported by Logo


Gerrit Bauch (Bielefeld, GER), Patrick Beißner (Canberra, AUS), Volker Böhm (Bielefeld, GER), Luciano Campi (London, GBR), Haoyang Cao (Berkeley, USA), Oliver Claas (Coburg, GER), Herbert Dawid (Bielefeld, GER), Tiziano De Angelis (Leeds, GBR), Davide De Santis (London, GBR), Jean-Paul Décamps (Toulouse, FRA), Jouatsa Ghislain Herman Demeze (Bielefeld, GER), Jodi Dianetti (Bielefeld, GER), Maria Gabriella Graziano (Neapel, ITA), Miryana Grigorova (Leeds, GBR), Thomas Guhr (Duisburg, GER), Saïd Hamadène (Les Mans, FRA), Tim Hellmann (Bielefeld, GER), Julian Hölzermann (Bielefeld, GER), Ulrich Horst (Berlin, GER), Jürgen Jost (Leipzig, GER), Annika Kemper (Bielefeld, GER), Torben Koch (Bielefeld, GER), Kasper Larsen (Piscataway, USA), Maria Lavrutich (Gløshaugen, NOR), Hanwu Li (Bielefeld, GER), Max Nendel (Bielefeld, GER), Elena Orlova (Bielefeld, GER), Marieke Pahlke (Bielefeld, GER), Luciano Pietrónero (Rom, ITA), Tsiry Randrianasolo (Bielefeld, GER), Giorgio Rizzini (Brescia, ITA), Maren Diane Schmeck (Bielefeld, GER), Xiaofei Shi (Pittsburgh, USA), Robert Simon (London, GBR), Jan-Henrik Steg (Bielefeld, GER), Christian Vieth (Bielefeld, GER), Gordan Žitković (Austin, USA)

Please direct questions concerning the organisation of the workshop to Trixi Valentin at the Conference Office. Questions regarding scientific content and contributions should be directed to the organizers.

Tel: +49 521 106-2769
Fax: +49 521 106-152769
E-Mail: trixi.valentin@uni-bielefeld.de