A social network model of investment behaviour in the stock market

L. Bakker, W. Hare, H. Khosravi and B. Ramadanovic

Physica A: Statistical Mechanics and its Applications, 2010, vol. 389, issue 6, 1223-1229

Abstract: To consider the psychological factors that impact market valuation, a model is formulated for investment behaviour of traders whose decisions are influenced by their trusted peers’ behaviour. The model is implemented and several different “trust networks” are tested. Simulation results demonstrate that real life trust networks can significantly delay the stabilisation of a market.

Keywords: Trust network model; Complex system; Stock market; Investment behaviour (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:389:y:2010:i:6:p:1223-1229

DOI: 10.1016/j.physa.2009.11.013

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