Growth and addition in a herding model with fractional orders of derivatives

Author:

Yap Yee JiunORCID,bin Segi Rahmat Mohamad Rafi,Hui Pak Ming

Abstract

Abstract This work involves an investigation of the mechanics of the herding behavior using a non-linear timescale, with the aim to generalize the herding model which helps to explain frequently occurring complex behavior in the real world, such as the financial markets. A herding model with fractional orders of derivatives was developed. This model involves the use of derivatives of order α where 0 < α 1 . We have found the generalized result which indicates that number of groups of agents with size k increases linearly with time as n k = p ( 2 p 1 ) ( 2 α ) p ( 1 α ) + 1 Γ ( α + 2 α 1 p ) Γ ( k ) Γ ( k 1 + α + 2 α 1 p ) t for α ( 0 , 1 ] , where p is a growth parameter. The result reduces to that in a previous herding model with a derivative order of 1 for α = 1. The results corresponding to various values of α and p are presented. The group-size distribution at long time is found to decay as a generalized power law, with an exponent depending on both α and p, thereby demonstrating that the scale invariance property of a complex system holds regardless of the order of the derivatives. The physical interpretation of fractional calculus is also explored based on the results of this work.

Publisher

IOP Publishing

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