Life in the Stockmarket - a Realistic Model for Trading

dc.creatorFranci, Fabio
dc.creatorMatassini, Lorenzo
dc.date2000-08-31
dc.date.accessioned2026-07-07T12:06:28Z
dc.date.available2026-07-07T12:06:28Z
dc.descriptionWe propose a frustrated and disordered many-body model of a stockmarket in which independent adaptive traders can trade a stock subject to the economic law of supply and demand. We show that the typical scaling properties and the correlated volatility arise as a consequence of the collective behavior of agents: With their interaction they determine a price which in turn affects their future way of investing. We introduce only one type of investors, since they all share the same hope: They simply want to maximize the profit minimizing the risk. The best utilization of resources occurs at a critical point characterized by the transition between the excess-demand and the excess-supply phases.
dc.description4 pages, 4 figures
dc.identifierhttps://arxiv.org/abs/cond-mat/0008466
dc.identifierhttp://arxiv.org/abs/cond-mat/0008466
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/208662
dc.subjectStatistical Mechanics
dc.subjectTrading and Market Microstructure
dc.titleLife in the Stockmarket - a Realistic Model for Trading
dc.typetext

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