The Role of Liquidity Individuals in the Decision-Making

Matjaz Steinbacher

MPRA Paper from University Library of Munich, Germany

Abstract: We simulate social network games of a portfolio selection to analyze the role of liquidity individuals for the developments in individuals’ decision-making in financial markets. Liquidity individuals prove to be a significant element in the decision-making process of the entire network, as they keep the information of non-dominant strategies alive. Their role is especially significant under omniscient individuals, whereas a little less under non-omniscient individuals. As long as individuals do not lose the information of all the alternatives, their role is insignificant.

Keywords: social networks; portfolio analysis; stochastic finance (search for similar items in EconPapers)
JEL-codes: C73 G11 Z13 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-gth and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:13566

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