Westerhoff, Frank H. - In: Physica A: Statistical Mechanics and its Applications 343 (2004) C, pp. 635-642
We present a behavioral stock market model in which traders are driven by greed and fear. In general, the agents optimistically believe in rising markets and thus buy stocks. But if stock prices change too abruptly, they panic and sell stocks. Our model mimics some stylized facts of stock market...