Mapping the economy to the some statistical physics models we get strong indications that, in contrary to the pure stock market, the stock market with derivatives could not self-regulate.
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20 results for “self-regulation”
Self-regulating annealing improves sampling from heavy-tailed datasets.
problem Sampling from heavy-tailed distributions using diffusion models.
method Proposed an SDE-based sampler with a state-dependent diffusion coefficient.
result State dependence induces a self-regulating annealing mechanism.
Not all types of supervision signals are created equal: Different types of feedback have different costs and effects on learning. We show how self-regulation strategies that decide when to ask for which kind of feedback from a teacher (or from oneself) can be cast as a learning-to-learn problem leading to improved cost…
Logit dynamics formula reveals self-regulation in softmax policy gradient methods.
problem Understanding the stability and convergence of softmax policy gradient methods.
method Deriving the exact formula for the L2 norm of the logit update vector.
result Logit update magnitudes are modulated by action probability and policy concentration.
This paper tackles AI model governance challenges in financial services.
problem Challenges in current AI model governance practices in financial services.
method Proposes a system-level framework for increased self-regulation.
result Enhanced model governance and risk management capabilities.
In this paper, simple mathematical models from Control Theory are applied to three very important economic paradigms, namely (a) minimum wages in self-regulating markets, (b) market-versus-true values and currency rates, and (c) government spending and taxation levels. Analytical solutions are provided in all three par…
Bubbles are rationalcs.GT
As we show using the notion of equilibrium in the theory of infinite sequential games, bubbles and escalations are rational for economic and environmental agents, who believe in an infinite world. This goes against a vision of a self regulating, wise and pacific economy in equilibrium. In other words, in this context, …
Decentralised fund framework allocates capital via tokenised vaults.
problem Traditional asset management's inefficiencies and centralisation.
method Permissionless, multi-strategy capital allocation through on-chain vaults.
result Self-regulating, cooperative optimisation across financial domains.
Despite all our great advances in science, technology and financial innovations, many societies today are struggling with a financial, economic and public spending crisis, over-regulation, and mass unemployment, as well as lack of sustainability and innovation. Can we still rely on conventional economic thinking or do …
New LSTM scheme incorporates prior knowledge and measurement uncertainties.
problem Overfitting and insufficient data for accurate time-dependent solutions.
method Sparse Bayesian training algorithm for automatic connection determination.
result Less prone to overfitting, smaller data set required for satisfying accuracy.
One-hot encoding is a labelling system that embeds classes as standard basis vectors in a label space. Despite seeing near-universal use in supervised categorical classification tasks, the scheme is problematic in its geometric implication that, as all classes are equally distant, all classes are equally different. Thi…
Explosive neural networks via higher-order interactions in curved statistical manifoldscond-mat.dis-nn
New neural networks model complex phenomena with fewer parameters.
problem Challenges in studying higher-order interactions in neural networks.
method Introducing curved neural networks using the maximum entropy principle.
result Curved neural networks accelerate memory retrieval and exhibit explosive phase transitions.
A new spin on optimal portfolios and ecological equilibriacond-mat.stat-mech
New insights into optimal portfolios and ecological equilibria reveal surprising complexity.
problem Optimal portfolio construction with ecological constraints.
method Computational analysis of multispecies Lotka-Volterra equations with unit rank interaction matrices.
result Logarithm of the average number of solutions grows as \(N^{2/3}\), with most likely solutions being much smaller.
The substantial turmoil created by both 2000 dot-com crash and 2008 subprime crisis has fueled the belief that the two classical paradigms of economics, which are the invisible hand and the rational agent, are not appropriate to describe market dynamics and should be abandoned at the benefit of alternative new theoreti…
Framework disentangles deep feature uncertainty for efficient inference.
problem Inference-time uncertainty estimation for reliable decision-making.
method Uncertainty-Guided Inference-Time Selection framework.
result Significantly tighter prediction intervals and 60% compute reduction.
Gradient descent forces neural network eigenvalues to a specific threshold.
problem Understanding why gradient descent drives eigenvalues to a specific threshold.
method Introduced edge coupling, a functional on consecutive iterate pairs, to explain the trajectory towards the eigenvalue threshold.
result Gradient descent forces the Hessian eigenvalue to the threshold from arbitrary initialization.
The Agentic Regulator: Risks for AI in Finance and a Proposed Agent-based Framework for Governancecs.CY
New AI governance framework tackles risks in finance.
problem Risks from evolving AI models in finance.
method Agent-based framework with modular governance architecture.
result Controls quarantine harmful behavior in real time.
Study reveals LLM personality patterns but lacks behavioral consistency.
problem Understanding and validating personality traits in LLMs.
method Characterized LLM personality across three dimensions: training dynamics, self-report validity, and intervention effects.
result Self-reported traits do not reliably predict behavior, and instructional alignment affects trait expression but not behavior.
There has been an explosion of interest in functional Magnetic Resonance Imaging (MRI) during the past two decades. Naturally, this has been accompanied by many major advances in the understanding of the human connectome. These advances have served to pose novel challenges as well as open new avenues for research. One …
Geometric approach to thermodynamics of chemical reaction networks.
problem Thermodynamics of chemical reaction networks with non-ideal behavior.
method Information geometry, Riemannian geometry, Cramer-Rao bound, absolute sensitivity.
result Absolute sensitivity is a projection operator onto the tangent bundle of the equilibrium manifold.