2012/02/29 by Aleksejus Kononovicius, Vygintas Gontis, Valentas Daniunas · 1 citation
Economics, Econometrics and Finance · Physics and Astronomy · #q-fin.GN #physics.soc-ph
published as International Journal On Advances in Intelligent Systems, volume 5, pages 111-126, 2012 · 20 pages, 8 figures
arxiv created 2012/06/18 · arxiv updated 2012/07/31
We present examples of agent-based and stochastic models of competition and business processes in economics and finance. We start from as simple as possible models, which have microscopic, agent-based, versions and macroscopic treatment in behavior. Microscopic and macroscopic versions of herding model proposed by Kirman and Bass diffusion of new products are considered in this contribution as two basic ideas. Further we demonstrate that general herding behavior can be considered as a background of nonlinear stochastic model of financial fluctuations.