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A statistical mechanics approach to measure peer-to-peer effects in Pharma research and development investments

Author

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  • Ferrari, Mascia
  • Fedele, Micaela
  • Luzi, Rachele
  • Vernia, Cecilia

Abstract

A multi-populated mean-field model applied on financial data from U.S. pharmaceutical and biotechnological companies is used to measure if a company investing in Research and Development (R&D) is influenced by the interaction with other firms (peer-to-peer effect). This model allows us to estimate the mutual influence among firms as well as their own inner propensity to invest in R&D. Our database covers the period 1989–2012. We validate our results out of sample by comparing them with the data of the period 2013–2019.

Suggested Citation

  • Ferrari, Mascia & Fedele, Micaela & Luzi, Rachele & Vernia, Cecilia, 2025. "A statistical mechanics approach to measure peer-to-peer effects in Pharma research and development investments," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 658(C).
    • Handle: RePEc:eee:phsmap:v:658:y:2025:i:c:s0378437124008070
    DOI: 10.1016/j.physa.2024.130297
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    References listed on IDEAS

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