Journal of Applied Mathematics and Stochastic Analysis
Volume 2006 (2006), Article ID 86412, 11 pages

Stock market dynamics created by interacting agents

Mohamed Riad Remita1 and Karl-Theodor Eisele2

1Département de Mathématiques, Faculté des Sciences, Université Badji Mokhtar, BP 12, Annaba 23000, Algeria
2Pôle Européen de Gestion et d'Economie (PEGE), 61 avenue de la Forêt Noire, 67085 Strasbourg Cedex; Faculté des Sciences Economiques et de Gestion, Université Louis Pasteur, Strasbourg Cedex 67070, France

Received 19 March 2004; Revised 26 September 2005; Accepted 26 September 2005

Copyright © 2006 Mohamed Riad Remita and Karl-Theodor Eisele. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


We study a stock market model, consisting in a large number of agents, going eventually to infinity, and evaluate the stock price under the influence of opinions of different agents. Next we study the behavior of prices when the market is very nervous; there appear discontinuities (phase transitions) which can be interpreted as stock market crashes.