The cellular automaton model of investment behavior in the stock market

Yi-Ming Wei, Shang-jun Ying, Ying Fan and Bing-Hong Wang

Physica A: Statistical Mechanics and its Applications, 2003, vol. 325, issue 3, 507-516

Abstract: The modeling theory and method using cellular automata are applied to the study on the complexity in the stock market. An evolution model based on cellular automaton for the investment behavior in the stock market is formulated. The simulation results and analyses of various states of the stock market show that investors’ imitation degree and the macro factors are the key determinants to the stability of the stock market. We observed that more diversity in the investment views of agents and lower imitation among investors are in favor of the normal development of the stock market.

Keywords: Cellular automaton; Complexity system; Stock market; Investment behavior (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:325:y:2003:i:3:p:507-516

DOI: 10.1016/S0378-4371(03)00144-4

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