The authors analyze financial interactions between fundamentalists and chartists within a heterogeneous agent model …, focusing on the role of fundamentalists stabilizing prices. In contrast to related studies, which are based on simulations and … calculations, they analytically prove that the presence of fundamentalists is not sufficient to avoid asset price bubbles. The …

The authors analyze financial interactions between chartists with bounded leverage and fundamentalists within a … heterogeneous agent model, focusing on the role of fundamentalists to stabilize prices. While many related studies are solely based … on simulations, the authors analytically prove that the existence of fundamentalists is insufficient to avoid asset price …

the interaction between rational fundamentalists and trend following imitative noise traders. The interactions and opinion … into a given asset, which then impels fundamentalists to re-equilibrate their more valuable portfolios that have become … identified a mechanism by which the cautious risk-adverse contrarian rebalancing strategy of fundamentalists leads to systemic …