Abrupt rise of new machine ecology beyond human response time.

Abstract:

:Society's techno-social systems are becoming ever faster and more computer-orientated. However, far from simply generating faster versions of existing behaviour, we show that this speed-up can generate a new behavioural regime as humans lose the ability to intervene in real time. Analyzing millisecond-scale data for the world's largest and most powerful techno-social system, the global financial market, we uncover an abrupt transition to a new all-machine phase characterized by large numbers of subsecond extreme events. The proliferation of these subsecond events shows an intriguing correlation with the onset of the system-wide financial collapse in 2008. Our findings are consistent with an emerging ecology of competitive machines featuring 'crowds' of predatory algorithms, and highlight the need for a new scientific theory of subsecond financial phenomena.

journal_name

Sci Rep

journal_title

Scientific reports

authors

Johnson N,Zhao G,Hunsader E,Qi H,Johnson N,Meng J,Tivnan B

doi

10.1038/srep02627

subject

Has Abstract

pub_date

2013-01-01 00:00:00

pages

2627

issn

2045-2322

pii

srep02627

journal_volume

3

pub_type

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