Complexity with Heterogeneous Fundamentalists and a Multiplicative Price Mechanism
Ahmad Naimzada and
Giorgio Ricchiuti
Economic Notes, 2014, vol. 43, issue 3, 233-247
Abstract:
type="main" xml:lang="en">
In contrast with the canonical models of financial markets with heterogeneous agents,, Naimzada and Ricchiuti, ( , ) show that the interaction of groups of agents who have the same trading rule but present different beliefs about the fundamental value could be a source of instability. In this paper, differently from, Naimzada and Ricchiuti, ( , ), we assume that the market maker employs a so-called multiplicative price mechanism (Tuinstra, ; Zhu et al., ). We show that the occurrence of heterogeneity has an ambiguous role: it may either stabilize or destabilize the market.
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (4)
Downloads: (external link)
http://hdl.handle.net/ (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Complexity with Heterogeneous Fundamentalists and a Multiplicative Price Mechanism (2013) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bla:ecnote:v:43:y:2014:i:3:p:233-247
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0391-5026
Access Statistics for this article
More articles in Economic Notes from Banca Monte dei Paschi di Siena SpA
Bibliographic data for series maintained by Wiley Content Delivery (contentdelivery@wiley.com).