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  • 标题:Heterogeneous Beliefs on Over-The-Counetr Markets
  • 本地全文:下载
  • 作者:Marc de Kamps ; Daniel Ladley ; Aistis Simaitis
  • 期刊名称:Discussion Papers / University of Leicester, Department of Economics
  • 出版年度:2013
  • 出版社:Leicester
  • 摘要:

    The behavior and stability of over-the-counter markets is of central concern to regulators. Little is known, however, about how the structure of these markets determine their properties. In this paper we consider an over-the-counter market populated by boundedly rational heterogeneous traders in which the structure is represented by a network. Stability if found to decrease as the market becomes less well connected. The valuations of traders in weakly connected markets diverge more frequently resulting in complex price dynamics. Small-world links and an above average number of undamentalist traders are also both shown to exacerbate instability.

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