Complex dynamics, market mediation and stock price behavior. (With discussion by Irwin T. Vanderhoof). (English) Zbl 1080.91537

Summary: Most exchanges in a decentralized economy are mediated by agents who make markets. This paper applies the elementary theory of such mechanisms to equity markets. Based on stylized institutional and behavioral facts and exploiting the methods of nonlinear dynamics, it explains salient properties of stock market dynamics.


91B62 Economic growth models
37N40 Dynamical systems in optimization and economics
91B28 Finance etc. (MSC2000)
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