Abstract The vectorial Deffuant model is a simple stochastic process for the dynamics of opinions that also includes a confidence threshold. To understand the role of space in this type of social interactions, we study the process on the one-dimensional lattice where individuals are characterized by their opinion – in favor or against – about F different issues and where pairs of nearest neighb...

Empirical applications of real options models in competitive environments implicitly exploit the optimality of myopic planning. In a seminal paper Leahy (1993) shows that the optimal investment strategy of a myopic planner, who ignores market entries and exits of competitors as well as the resulting price effects, also constitutes a market equilibrium under rather general conditions. As a resul...

In a team, people sometimes leave the team and become replaced by new persons with less experience, and sometimes people participate in new activities and thereby obtain new knowledge. Different processes, in terms of different management strategies, can be followed, e.g., to introduce people to new tasks so they get new knowledge. There is a need to investigate the long term effects of differe...

In this paper, we propose a novel approach for Fuzzy random-valued Optimization. The main idea behind our approach consists of taking advantage of interplays between fuzzy random variables and random sets in a way to get an equivalent stochastic program. This helps avoiding pitfalls due to severe oversimplification of the reality. We consider a numerical example that shows the efficiency of the...

We propose a model based on coupled multiplicative stochastic processes to understand the dynamics of competing species in an ecosystem. This process can be conveniently described by a Fokker-Planck equation. We provide an analytical expression for the marginalized stationary distribution. Our solution is found in excellent agreement with numerical simulations and compares rather well with obse...

A dynamical model of an ecological community is analyzed within a "mean-field approximation" in which one of the species interacts with the combination of all of the other species in the community. Within this approximation the model may be formulated as a master equation describing a one-step stochastic process. The stationary distribution is obtained in closed form, and is shown to reduce to ...

We propose an equivalence class of nonstationary Gaussian stochastic processes defined in the wavelet domain. These processes are characterized by means of wavelet multipliers and exhibit well-defined time-dependent spectral properties. They allow one to generate realizations of any wavelet spectrum. Based on this framework, we study the estimation of continuous wavelet spectra, i.e., we calcul...

Traditional stochastic dominance rules are so strict and qualitative conditions that generally a stochastic dominance relation between two alternatives does not exist. To solve the problem, we firstly supplement the definitions of almost stochastic dominance (ASD). Then, we propose a new definition of stochastic dominance degree (SDD) that is based on the idea of ASD. The new definition takes b...

Stochastic Graph Transformation combines the benefits of graphical modelling with stochastic analysis techniques. In this paper we report on our framework Sma for Stochastic Modelling and Analysis, and SGT , a tool which uses the framework for Stochastic Graph Transformation.