Abstract
We present analytic and numerical results for two models, namely the minority model and the bar-attendance model, which offer simple paradigms for a competitive marketplace. Both models feature heterogeneous agents with bounded rationality who act using inductive reasoning. We find that the effects of crowding are crucial to the understanding of the macroscopic fluctuations, or `volatility', in the resulting dynamics of these systems.
Original language | English (US) |
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Pages (from-to) | 1-8 |
Number of pages | 8 |
Journal | Physica A: Statistical Mechanics and its Applications |
Volume | 269 |
Issue number | 1 |
DOIs | |
State | Published - Jul 1 1999 |
Event | Proceedings of the 1998 International Workshop on Econophysics and Statistical Finance - Palermo, Italy Duration: Sep 28 1998 → Sep 30 1998 |
ASJC Scopus subject areas
- Statistics and Probability
- Condensed Matter Physics