Large variations in stock prices happen with sufficient frequency to raise doubts about existing models, which all fail to account for non-Gaussian statistics. We construct simple models of a stock market, and argue that the large variations may be due to a crowd effect, where agents imitate...

Why is 'worthless' fiat money generally accepted as payment for goods and services? In equilibrium theory, the value of money is generally not determined: the number of equations is one less than the number of unknowns, so only relative prices are determined. In the language of mathematics, the...

Sea ice breaks up and regenerates rapidly during winter conditions in the Arctic. Analyzing satellite data from the Kara Sea, we find that the average ice floe size depends on weather conditions. Nevertheless, the frequency of floes of size A is a power law, N∼A−τ, where τ=1.6±0.2, for A...

The sun provides an explosive, heavenly example of self-organized criticality. Sudden bursts of intense radiation emanate from rapid rearrangements of the magnetic field network in the corona. Avalanches are triggered by loops of flux that reconnect or snap into lower-energy configurations when...