Abstract
The modeling theory and method using cellular automata are applied to the study on the complexity in the stock market. An evolution model based on cellular automaton for the investment behavior in the stock market is formulated. The simulation results and analyses of various states of the stock market show that investors' imitation degree and the macro factors are the key determinants to the stability of the stock market. We observed that more diversity in the investment views of agents and lower imitation among investors are in favor of the normal development of the stock market.
| Original language | English |
|---|---|
| Pages (from-to) | 507-516 |
| Number of pages | 10 |
| Journal | Physica A: Statistical Mechanics and its Applications |
| Volume | 325 |
| Issue number | 3-4 |
| DOIs | |
| Publication status | Published - 15 Jul 2003 |
| Externally published | Yes |
Keywords
- Cellular automaton
- Complexity system
- Investment behavior
- Stock market