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, Vol. 33 
