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[Keyword] bandwagon traders(1hit)

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  • A Synergetic Approach to Speculative Price Volatility

    Taisei KAIZOJI  

     
    PAPER

      Vol:
    E82-A No:9
      Page(s):
    1874-1882

    In this paper we propose a heterogeneous agents model that represents speculative dynamics by using the synergetic approach. We consider the markets for three securities (a stock, a bond, and a foreign currency). Each market consists of two typical types of investors: fundamentalists and bandwagon traders. We show the characteristic patterns of speculative prices (speculative bubbles and speculative chaos) which are generated by trading between the fundamentalists and bandwagon traders.