Deterministic and stochastic model for the analysis of the asset price

摘要

In this paper one model of speculative markets is developed to study the effects of feedback mechanisms in financial markets. The model is a two-asset model represented by 2-dimensional delay-differential equations. Applying the stability and bifurcation theory of the delay differential equations, for the deterministic model, the impact of switching and time horizon, used by the chartists on the market stability, is examined. Some numerical simulations both for the deterministic model and the stochastic model are provided. Finally, conclusions are drawn.