This paper studies an order-driven stock market where agents have heterogeneous estimates of the fundamental value of the risky asset. The agents are budget-constrained and follow a value-based trading strategy which buys or sells depending on whether the price of the asset is below or above its...

We study a modified version of the coordination game presented in [J. van Huyck, J. Cook, R. Battalio, Selection dynamics, asymptotic stability, and adaptive behavior, J. Polit. Econ. 102 (1994) 975–1005], where a representative selection dynamics was proposed to explain experimental data....