Capital flow in a two-component dynamical system
Statistical Mechanics
2009-10-31 v2 adap-org
Disordered Systems and Neural Networks
Adaptation and Self-Organizing Systems
Trading and Market Microstructure
Abstract
A model of open economics composed of producers and speculators is investigated by numerical simulations. The capital flows from the environment to the producers and from them to the speculators. The price fluctuations are suppressed by the speculators. When the aggressivity of the speculators grows, there is a transition from the regime with almost sure profit to a very risky regime in which very small fraction of speculators have stable gain. The minimum of price fluctuations occurs close to the transition.
Keywords
Cite
@article{arxiv.cond-mat/9906249,
title = {Capital flow in a two-component dynamical system},
author = {Frantisek Slanina and Yi-Cheng Zhang},
journal= {arXiv preprint arXiv:cond-mat/9906249},
year = {2009}
}
Comments
7 pages, 7 figures, submitted to Physica A