Microscopic models dealing with the decisions of traders on the market have tried to reproduce real market behaviour. Possibly the simplest of these models is the herding approach of Cont and Bouchaud. Variations include letting the concentration varying between zero and unity (or zero and...

The Cont–Bouchaud percolation model is one of the simplest microsimulation models yet able to account for the main stylized fact of financial markets, e.g. fat tails of the histogram of log-returns. In the present paper we show that for a certain range of the parameters it is possible to...