Long-term trends of financial markets are considered as a growth phenomenon, with a steady influx of money needed to ensure a sustainable growth. A study is made of the impact of money supply, dividends and interest rates, on the growth of a market. A method to estimate the level of investment...

We use agent-based models to study the competition among investors who use trading strategies with different amount of information and with different time scales. We find that mixing agents that trade on the same time scale but with different amount of information has a stabilizing impact on the...

This paper studies the switching of trading strategies and its effect on the market volatility in a continuous double auction market. We describe the behavior when some uninformed agents, who we call switchers, decide whether or not to pay for information before they trade. By paying for the...

Self-organized criticality (SOC) in systems governed by stick-slip dynamics is studied by means of a spring-block model. Contrary to conventional models which are loaded additively in their stationary states, our model is driven towards equilibrium in a multiplicative and isotropic manner via a...