A prototype model of stock exchange

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1997 EDP Sciences
, , Citation G. Caldarelli et al 1997 EPL 40 479 DOI 10.1209/epl/i1997-00491-5

0295-5075/40/5/479

Abstract

A prototype model of stock market is introduced and studied numerically. In this self-organized system, we consider only the interaction among traders without external influences. Agents trade according to their own strategy, to accumulate their assets by speculating on the price's fluctuations which are produced by themselves. The model reproduced rather realistic price histories whose statistical properties are also similar to those observed in real markets.

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10.1209/epl/i1997-00491-5