An Research On Stock Market Evolutionary

摘要

Friedman considered that financial market should eliminate the irrational traders. For the sake of analyze such a point, established a model adopt birth-death process to research the stock market which have rational traders and irrational traders. We studied the velocity of rational traders and irrational traders enter and quit the stock market. Based on this we can analysis the dynamic rule of the increase or decrease of the numbers of rational traders and irrational traders in stock market. The conclusion is that the irrational may not be eliminated from the stock market. Their survival or disappear depend on many factors. Such factors include the initial wealth of irrational traders, the profits and losses of irrational traders, etc.