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**Heterogeneous fundamentalists and imitative processes.**
*(English)*
Zbl 1134.91508

Summary: Developing a model with a switching mechanism, we show how complex dynamics can be generated even though heterogeneity arises among agents with the same trading rules (fundamentalists). We assume that there are two experts which are imitated by other operators. We show that (i) market instability and periodic, or even, chaotic price fluctuations can be generated; (ii) conditions exist under which an expert can drive another expert out of the market; (iii) two experts can survive when the dynamic system either generates a period doubling bifurcation around an attractor or when an homoclinic bifurcation leads to the merging of the two attractors [R. Dieci, G.-I. Bischi and L. Gardini [Chaos Solitons Fractals 12, No. 5, 805–822 (2001; Zbl 1032.91093)]; (iv) a central role is played by the reaction to misalignment of both market maker and agents.

### MSC:

91B62 | Economic growth models |

91B64 | Macroeconomic theory (monetary models, models of taxation) |

37N40 | Dynamical systems in optimization and economics |

### Citations:

Zbl 1032.91093
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\textit{A. K. Naimzada} and \textit{G. Ricchiuti}, Appl. Math. Comput. 199, No. 1, 171--180 (2008; Zbl 1134.91508)

### References:

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