Phase Transition in a Bounded Rational Speculative and Hedging Model

The book "Phase Transition in a Bounded Rational Speculative and Hedging Model" offers a comprehensive analysis of an economic model that examines two interacting markets with bounded rational actors. The authors, Michael Campbell and David Carfì, illuminate how the emergence of market preferences results from a broken market exchange symmetry. This dynamic can lead actors to shift capital from one market to another, which in certain scenarios can result in a market collapse. By applying statistical mechanics to the concepts of the Sunshine Mantel-Debreu theorem, a deeper understanding of the complex interactions between the markets and the actors is created. The book is aimed at professionals and students in the fields of economics and law who wish to engage with the theoretical foundations and practical implications of market behavior.