Modelling an imperfect market

Raul Donangelo, Alex Hansen, Kim Sneppen and Sergio R. Souza

Physica A: Statistical Mechanics and its Applications, 2000, vol. 283, issue 3, 469-478

Abstract: We propose a simple market model where agents trade different types of products with each other by using money, relying only on local information. Value fluctuations of single products, combined with the condition of maximum profit in transactions, readily lead to persistent fluctuations in the wealth of individual agents.

Keywords: Self-organization; Interacting agents; Financial market; Fat tails; Fat cat (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:283:y:2000:i:3:p:469-478

DOI: 10.1016/S0378-4371(00)00177-1

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