A Research of Heterogeneous Traders and Stock Market Evolution Dynamic
ZHAO Peng-ju1,2
1.System and industrial engineering technology research center, Zhongyuan University of Technology, Zhengzhou 450007, China; 2.Department of Management and Economics, Tianjin University, Tianjin 200012, China
Abstract：
Long-run equilibrium of financial markets evolution with heterogeneous traders is one of the focused issues of neoclassic finance and behavior finance. The paper establishes a differential dynamical system model to describe the evolution dynamics of financial markets with coexisting rational and irrational traders and analyzes the stock market evolution dynamics under a market price exogenous assumption. Furthermore, this paper simulates the evolution trajectory using MATLAB and finally gets the evolution dynamics and the final results of financial markets with heterogeneous traders.
2016 
