Studying heterogeneity among fundamentalists in financial markets: a note. (English) Zbl 1286.91151
Summary: In this note, developing a model with agents that act as fundamentalists, we show that adding simple stochastic components, a greater set of parameters can lead to complex dynamics. Moreover, we identify periods of financial distress between bubbles and crashes detected by C. P. Kindleberger [Manias, panics, and crashes: a history of financial crisis. New York, NY: John Wiley (2000), http://openlibrary.org/books/OL21865779M] from a series of famous speculative bubbles and crashes in world history.
MSC:
| 91G80 | Financial applications of other theories |
| 39A33 | Chaotic behavior of solutions of difference equations |
| 39A50 | Stochastic difference equations |
Software:
E&F ChaosReferences:
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