Scholarlink

<p>This study presents an order book model to explore the influence of individual traders’ attitudes on financial market stability. To this end, we model traders’ psychological ability to resist external stimuli, by introducing an analogy between their psychomotor capacity to balance unstable objects and the experience in resisting destabilizing financial market signals. Our main results show that the personal experience, i.e., the combination of ability and timing of reaction, of market participants affects the fat tails of the return distribution in our model. Some policy directions are finally drawn.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Financial Markets and Individual Attitudes: The Stick-balancing Model

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2025年12月22日

查看全文
  • Laura Mazzarino,
  • Alessio Emanuele Biondo,
  • Alessandro Pluchino

摘要

This study presents an order book model to explore the influence of individual traders’ attitudes on financial market stability. To this end, we model traders’ psychological ability to resist external stimuli, by introducing an analogy between their psychomotor capacity to balance unstable objects and the experience in resisting destabilizing financial market signals. Our main results show that the personal experience, i.e., the combination of ability and timing of reaction, of market participants affects the fat tails of the return distribution in our model. Some policy directions are finally drawn.