Financial markets consist of agent clusters with different sizes and orientations (buy or sell). When two heterogeneous agent clusters encounter, an exchange occurs; while two homogeneous ones meet, they may merge into a bigger one. We propose a heterogeneous agent interacting herding model, by introducing a parameter, reliability k, thus leading to the asymmetry of the action of trading and incorporating. Numerical calculation shows that the artificial market dynamics changes significantly when varying reliability. For a specific k, the dynamics exhibit some behaviors very close to real markets. © 2006 Elsevier B.V. All rights reserved.
Dong, L. (2007). Market behaviors and dynamic evolution on heterogeneous agent clusters. Physica A: Statistical Mechanics and Its Applications, 376(1–2), 573–578. https://doi.org/10.1016/j.physa.2006.10.066