We present a model for the [alpha]-beauty contest that explains common patterns in experimental data of one-shot and iterative games. The approach is based on two basic assumptions. First, players iteratively update their recent guesses. Second, players estimate intervals rather than exact...

The so-called “Guessing Game” or α-Beauty Contest serves as a paradigmatic conceptual framework for competitive price formation on financial markets beyond traditional equilibrium finance. It highlights features that are reasonable to consider when dealing with price formation on real...

We consider site percolation in a class of correlated random media derived from randomly bi-colored triangular lattices. Media are constructed due to specific state-dependent local constraints. Constraints destroy stochastic independence of elementary events and have specific impact on site...

We investigate behavior of the continuous stochastic signals above some threshold, bursts, when the exponent of multiplicativity is higher than one. Earlier we have proposed a general nonlinear stochastic model applicable for the modeling of absolute return and trading activity in financial...

We consider global site percolation on a correlated bi-colored honeycomb lattice. The correlated medium is constructed from an independently randomly bi-colored triangular lattice due to a state dependent constraint. The constraint evokes short-range correlations and establishes a simple...