An Evolution Model of Trading Behavior Based on Peer Effect in Networks
Joint Authors
Xu, Lu
Li, Jin-Sheng
He, Jian-Min
Bian, Yue-Tang
Zhuang, Ya-Ming
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2012, Issue 2012 (31 Dec. 2012), pp.1-15, 15 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2012-05-13
Country of Publication
Egypt
No. of Pages
15
Main Subjects
Abstract EN
This work concerns the modeling of evolvement of trading behavior in stock markets which can cause significant impact on the movements of prices and volatilities.
Based on the assumption of the investors' limited rationality, the evolution mechanism of trading behavior is modeled according to peer effect in network, that investors are prone to imitate their neighbors' activity through comprehensive analysis on the neighboring preferred degree, self-psychological preference, and the network topology of the relationship among them.
We investigate by mean-field analysis and extensive simulations the evolution of investors' trading behavior in various typical networks under different characteristics of peer effect.
Our results indicate that the evolution of investors' behavior is affected by the network structure of stock market and the effect of neighboring preferred degree; the stability of equilibrium states of investors' behavior dynamics is directly related with the concavity and convexity of the peer effect function; connectivity and heterogeneity of the network play an important role in the evolution of the investment behavior in stock market.
American Psychological Association (APA)
Bian, Yue-Tang& Xu, Lu& Li, Jin-Sheng& He, Jian-Min& Zhuang, Ya-Ming. 2012. An Evolution Model of Trading Behavior Based on Peer Effect in Networks. Discrete Dynamics in Nature and Society،Vol. 2012, no. 2012, pp.1-15.
https://search.emarefa.net/detail/BIM-448725
Modern Language Association (MLA)
Bian, Yue-Tang…[et al.]. An Evolution Model of Trading Behavior Based on Peer Effect in Networks. Discrete Dynamics in Nature and Society No. 2012 (2012), pp.1-15.
https://search.emarefa.net/detail/BIM-448725
American Medical Association (AMA)
Bian, Yue-Tang& Xu, Lu& Li, Jin-Sheng& He, Jian-Min& Zhuang, Ya-Ming. An Evolution Model of Trading Behavior Based on Peer Effect in Networks. Discrete Dynamics in Nature and Society. 2012. Vol. 2012, no. 2012, pp.1-15.
https://search.emarefa.net/detail/BIM-448725
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-448725