Switching by agents between two trading behaviors and the stylized facts of financial markets

TL;DR

This paper investigates how agents switch between two trading behaviors and examines the resulting stylized facts observed in financial markets.

Contribution

It introduces a model of agent behavior switching and analyzes its impact on market stylized facts, providing new insights into market dynamics.

Findings

Agents switch behaviors in response to market conditions

The model reproduces key stylized facts of financial markets

Behavior switching influences market volatility and return distributions

Abstract

This paper has been withdrawn by the author: it was a too preliminary version.