We attempt to explain stock market dynamics in terms of the interaction among three variables: market price, investor opinion and information flow. We propose a framework for such interaction upon which are based two models of stock market dynamics : the model for empirical study and its extended version for theoretical study . We demonstrate that these models replicate observed stock market behavior on all relevant timescales (from days to years) reasonably well. Using the models , we obtain and discuss a number of results that pose implications for current market theory and offer potential practical applications.
We attempt to explain stock market dynamics in terms of the interaction among three variables: market price, investor opinion and information flow. We propose a framework for such interaction and apply it to build a model of stock market dynamics which we study both empirically and theoretically . We demonstrate that this model replicates observed market behavior on all relevant timescales (from days to years) reasonably well. Using the model , we obtain and discuss a number of results that pose implications for current market theory and offer potential practical applications.
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upon which are based two models
and apply it to build a model
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: the model for empirical study and its extended version for theoretical study
which we study both empirically and theoretically
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these models replicate observed stock
this model replicates observed
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models
model