Trust in Foreseeing Neighbours A Novel Threshold Model of Financial Market

Abstract

The three-state agent-based 2D model of nancial markets in the version proposed by Giulia Iori in 2002 has been herein extended. We have introduced the increase of herding behaviour by modelling the altering trust of an agent in his nearest neighbours. The trust increases if the neighbour has foreseen the price change correctly and the trust decreases in… (More)

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