Stock market model first to reproduce main properties of the real market

(PhysOrg.com) -- Since the early '90s, researchers have been developing simulations of financial markets with the goal to better understand market dynamics. While their models have improved since then to explain more features of the markets, no model has yet been able to fully reproduce the main statistical properties of financial markets in a single framework. In a new study, a team of researchers has developed an artificial stock market that, for the first time, can reproduce these main properties. Overall, the model shows how information exchange among agents can be used to understand the role of information in real markets.

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