A social network model of investment behaviour in the stock market
To consider the psychological factors that impact market valuation, a model is formulated for investment behaviour of traders whose decisions are influenced by their trusted peers’ behaviour. The model is implemented and several different “trust networks” are tested. Simulation results demonstrate t...
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Published in | Physica A Vol. 389; no. 6; pp. 1223 - 1229 |
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Main Authors | , , , |
Format | Journal Article |
Language | English |
Published |
Elsevier B.V
15.03.2010
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Subjects | |
Online Access | Get full text |
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Summary: | To consider the psychological factors that impact market valuation, a model is formulated for investment behaviour of traders whose decisions are influenced by their trusted peers’ behaviour. The model is implemented and several different “trust networks” are tested. Simulation results demonstrate that real life trust networks can significantly delay the stabilisation of a market. |
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Bibliography: | ObjectType-Article-2 SourceType-Scholarly Journals-1 ObjectType-Feature-1 content type line 23 |
ISSN: | 0378-4371 1873-2119 |
DOI: | 10.1016/j.physa.2009.11.013 |