Inspired by the theory of social imitation (Weidlich 1970) and its adaptation to financial markets by the Coherent … our dynamic stock price model, we develop a two factor general equilibrium model for pricing derivative securities. The … two factors of our model are the stock price and a market polarization variable which determines the level of overreaction …

as bull and bear market dynamics and excess volatility. -- Heterogeneous interacting agents ; Bull and bear market …

-post and ex-ante types), of cancellation fees and of transaction taxes on asset price volatility and on the occurrence and …, the introduction of an ex-ante circuit breaker markedly reduces price volatility and removes flash crashes. In contrast … price fluctuations. In addition, high-frequency traders employ low-latency directional strategies that exploit market …