Non-equilibrium price theories

Dirk Helbing and Daniel Kern

Physica A: Statistical Mechanics and its Applications, 2000, vol. 287, issue 1, 259-268

Abstract: We propose two theories for the formation of stock prices under the condition that the number of available stocks is fixed. Both theories consider the balance equations for cash and several kinds of stocks. They also take into account interest rates, dividends, and transaction costs. The proposed theories have the advantage that they do not require iterative procedures to determine the price, which would be inefficient for simulations with many agents.

Keywords: Econophysics; Multi-agent model; Stock prices; Market model (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:287:y:2000:i:1:p:259-268

DOI: 10.1016/S0378-4371(00)00458-1

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