Numerical Modeling, Noise Traders, and the Swarm Simulation System

by

Timothy E. Jares


It investigates the persistence of noise traders observed in the real world, a phenomenon that contradicts the predictions of traditional models. The presence of such traders is shown to affect long-term prices.
Wealth appears to play a secondary role with respect to the configuration and characteristics of market institutions. Noise traders are shown to disappear when their beliefs are not highly correlated so that fundamental traders will dominate.


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