Exact Solution to Two-Body Financial Dealer Model: Revisited from the Viewpoint of Kinetic Theory

  title={Exact Solution to Two-Body Financial Dealer Model: Revisited from the Viewpoint of Kinetic Theory},
  author={Kiyoshi Kanazawa and Hideki Takayasu and Misako Takayasu},
  journal={Journal of Statistical Physics},
The two-body stochastic dealer model is revisited to provide an exact solution to the average order-book profile using the kinetic approach. The dealer model is a microscopic financial model where individual traders make decisions on limit-order prices stochastically and then reach agreements on transactions. In the literature, this model was solved for several cases: an exact solution for two-body traders N=2\documentclass[12pt]{minimal} \usepackage{amsmath} \usepackage{wasysym} \usepackage… 



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