• Corpus ID: 237485383

Bidirectional bond percolation model for the spread of information in financial markets

  title={Bidirectional bond percolation model for the spread of information in financial markets},
  author={Stefano Chiaradonna and Nicolas Lanchier},
Abstract Information is a key component in determining the price of an asset in financial markets, and the main objective of this paper is to study the spread of information in this context. The network of interactions in financial markets is modeled using a Galton-Watson tree where vertices represent the traders and where two traders are connected by an edge if one of the two traders sells the asset to the other trader. The information starts from a given vertex and spreads through the edges… 

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