Next Article in Journal
Generalized Remote Preparation of Arbitrary m-qubit Entangled States via Genuine Entanglements
Next Article in Special Issue
Target Detection and Ranging through Lossy Media using Chaotic Radar
Previous Article in Journal / Special Issue
Synchronicity from Synchronized Chaos
Open AccessArticle

Research on the Stability of Open Financial System

by Haijun Yang *, Lin Li and Deshen Wang
School of Economics and Management, Beijing University of Aeronautics & Astronautics, 37 Xueyuan Road, Haidian District, Beijing 100191,China
*
Author to whom correspondence should be addressed.
These authors contributed equally to this work.
Academic Editors: Guanrong Chen, C.K. Michael Tse, Mustak E. Yalcin, Hai Yu and Mattia Frasca
Entropy 2015, 17(4), 1734-1754; https://doi.org/10.3390/e17041734
Received: 6 February 2015 / Revised: 19 March 2015 / Accepted: 24 March 2015 / Published: 27 March 2015
(This article belongs to the Special Issue Recent Advances in Chaos Theory and Complex Networks)
We propose a new herd mechanism and embed it into an open financial market system, which allows traders to get in and out of the system based on some transition rates. Moreover, the novel mechanism can avoid the volatility disappearance when the population scale increases. There are three kinds of heterogeneous agents in the system: optimistic, pessimistic and fundamental. Interactions especially occur among three different groups of agents instead of two, which makes the artificial financial market more close to the real one. By the simulation results of this complex system, we can explain stylized facts like volatility clustering and find the key parameters of market bubbles and market collapses. View Full-Text
Keywords: herd behavior; open system complexity; multiple agent interaction; volatility cluster herd behavior; open system complexity; multiple agent interaction; volatility cluster
MDPI and ACS Style

Yang, H.; Li, L.; Wang, D. Research on the Stability of Open Financial System. Entropy 2015, 17, 1734-1754.

Show more citation formats Show less citations formats

Article Access Map by Country/Region

1
Only visits after 24 November 2015 are recorded.
Back to TopTop