Article ID Journal Published Year Pages File Type
976903 Physica A: Statistical Mechanics and its Applications 2010 7 Pages PDF
Abstract

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.

Related Topics
Physical Sciences and Engineering Mathematics Mathematical Physics
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