Log-Periodic Power Law Autonomous Stock Market Model

2019 ◽  
Author(s):  
Oleg I. Krivosheev
Keyword(s):  
Stock Market ◽  
Power Law ◽  
Market Model

DYNAMICAL EXPLANATION FOR THE EMERGENCE OF POWER LAW IN A STOCK MARKET MODEL

1996 ◽  
Vol 07 (01) ◽  
pp. 65-72 ◽  
Author(s):  
MOSHE LEVY ◽  
SORIN SOLOMON ◽  
GIVAT RAM
Keyword(s):  
Stock Market ◽  
Power Law ◽  
Wealth Distribution ◽  
Power Laws ◽  
Stationary Regime ◽  
Market Model ◽  
Self Organized ◽  
Wide Range ◽  
Self Organized Criticality ◽  
Sand Piles

Power laws are found in a wide range of different systems: From sand piles to word occurrence frequencies and to the size distribution of cities. The natural emergence of these power laws in so many different systems, which has been called self-organized criticality, seems rather mysterious and awaits a rigorous explanation. In this letter we study the stationary regime of a previously introduced dynamical microscopic model of the stock market. We find that the wealth distribution among investors spontaneously converges to a power law. We are able to explain this phenomenon by simple general considerations. We suggest that similar considerations may explain self-organized criticality in many other systems. They also explain the Levy distribution.

New Stock Market Model

1997 ◽  
Author(s):  
Brian NMI Thomas
Keyword(s):  
Stock Market ◽  
Market Model

scholarly journals Power Laws in Economics: An Introduction

2016 ◽  
Vol 30 (1) ◽  
pp. 185-206 ◽  
Author(s):  
Xavier Gabaix
Keyword(s):  
Stock Market ◽  
Power Law ◽  
Power Laws ◽  
Economic Fluctuations ◽  
Formal Definition ◽  
Empirical Power

Many of the insights of economics seem to be qualitative, with many fewer reliable quantitative laws. However a series of power laws in economics do count as true and nontrivial quantitative laws—and they are not only established empirically, but also understood theoretically. I will start by providing several illustrations of empirical power laws having to do with patterns involving cities, firms, and the stock market. I summarize some of the theoretical explanations that have been proposed. I suggest that power laws help us explain many economic phenomena, including aggregate economic fluctuations. I hope to clarify why power laws are so special, and to demonstrate their utility. In conclusion, I list some power-law-related economic enigmas that demand further exploration. A formal definition may be useful.

A Stock Market Model

2008 ◽  
Author(s):  
Myron J. Gordon ◽  
Suresh Sethi
Keyword(s):  
Stock Market ◽  
Market Model

THE INFLUENCE OF INVESTOR NUMBER ON A MICROSCOPIC MARKET MODEL

1996 ◽  
Vol 06 (06) ◽  
pp. 845-852 ◽  
Author(s):  
T. HELLTHALER
Keyword(s):  
Stock Market ◽  
Market Model

The stock market model of Levy, Persky, Solomon is simulated for much larger numbers of investors. While small markets can lead to realistically looking prices, the resulting prices of large markets oscillate smoothly in a semi-regular fashion.

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