Name
Abstract | ||
|---|---|---|
Financial markets can be considered as collective information processing devices, which aggregate the information on relevant events into market prices. We show that, in a simple model, markets are efficient aggregators of information only if the number of traders is sufficiently large compared to the number of relevant events. The transition to an efficient market occurs through a phase transition, well known from critical phenomena in physics. |
Year | DOI | Venue |
|---|---|---|
2003 | 10.1002/cplx.10065 | Complexity - Complex Adaptive systems: Part I |
Keywords | DocType | Volume |
relevant event,efficient market,simple model,collective information processing device,efficient aggregators,phase transition,financial market,critical phenomenon,market price,financial markets,phase transitions,complex systems | Journal | 8 |
Issue | Citations | PageRank |
2 | 8 | 1.21 |
References | Authors | |
0 | 4 | |
Name | Order | Citations | PageRank |
|---|---|---|---|
| Johannes Berg | 1 | 41 | 6.32 |
| Matteo Marsili | 2 | 149 | 17.65 |
| Aldo Rustichini | 3 | 38 | 9.28 |
| riccardo zecchina | 4 | 637 | 55.46 |