• Corpus ID: 14387815

Market efficiency, anticipation and the formation of bubbles-crashes

@article{Galam2011MarketEA,
  title={Market efficiency, anticipation and the formation of bubbles-crashes},
  author={Serge Galam},
  journal={ArXiv},
  year={2011},
  volume={abs/1106.1577}
}
  • S. Galam
  • Published 8 June 2011
  • Economics
  • ArXiv
A dynamical model is introduced for the formation of a bullish or bearish trends driving an asset price in a given market. Initially, each agent decides to buy or sell according to its personal opinion, which results from the combination of its own private information, the public information and its own analysis. It then adjusts such opinion through the market as it observes sequentially the behavior of a group of random selection of other agents. Its choice is then determined by a local… 

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