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Chinese Journal of Management Science ›› 2017, Vol. 25 ›› Issue (3): 20-29.doi: 10.16381/j.cnki.issn1003-207x.2017.03.003

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Simulation and Evolution Model of Herding Behavior in Stock Market Based on the Strategy of Coordination Game in Network

BIAN Yue-tang1, LI Jin-sheng1, XU Lu2   

  1. 1. School of Business, Nanjing Normal University, Nanjing 210023, China;
    2. Nanjing Institute of Railway Technology, Nanjing 210031, China
  • Received:2014-07-12 Revised:2015-08-04 Online:2017-03-20 Published:2017-05-27

Abstract: Taking into account the characteristics of investors' strategic imitation, herding behavior evolution model in stock market is developed based on the strategy of network coordination game and the assumption of the investors' limited rationality.By mean-field analysis and extensive simulations, the evolution of investors' trading behavior in various typical networks under different risk dominance degree of investment behavior is investigated.Our results indicate that the evolution of investors' behavior is affected by the network structure of stock market and the effect of risk dominance degree of investment behavior; the stability of equilibrium states of investors' behavior dynamics is directly related with the risk dominance degree of some behavior; connectivity and heterogeneity of the network plays an important role in the evolution of the investment behavior in stock market.

Key words: complex networks, coordination game, herding behavior, evolution model

CLC Number: