THE behaviour of complex systems such as financial markets may be far easier to predict and control than previously thought, suggests a new computer model of such systems.
Anything as messy as a financial market is usually considered too difficult to predict or manage. But physicist Neil Johnson and mathematician David Smith of the University of Oxford now claim that the prospects are not so bleak.
They explored a model designed to mimic a broad class of multi-component systems, from financial markets and ecosystems to complex computer software. In their model, “agents” within a population use various strategies to compete…
