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Title: A Herding Model with Preferential Attachment and Fragmentation
Authors: Rodgers, GJ
Zheng, DG
Keywords: Disordered systems;Neural networks;Fragmentation;Preferential attachment;Herding;Financial markets
Issue Date: 2002
Citation: Physica A, 308, pp. 375-380 (2002)
Abstract: We introduce and solve a model that mimics the herding effect in financial markets when groups of agents share information. The number of agents in the model is growing and at each time step either (i) with probability p an incoming agent joins an existing group, or (ii) with probability 1-p a group is fragmented into individual agents. The group size distribution is found to be power-law with an exponent that depends continuously on p. A number of variants of our basic model are discussed. Comparisons are made between these models and other models of herding and random growing networks.
Appears in Collections:Mathematical Physics
Dept of Mathematics Research Papers
Mathematical Sciences

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