Volatile Markets Attract Traders, Stabilize Economies
The study explores how a group of agents organizes itself in a market. They found that the number of agents affects how the market behaves, with a finite number leading to specific patterns. Agents entering or leaving the market based on price movements help create this organization. The system is more stable with a moderate number of agents, as too few or too many can disrupt the market. This self-organization mechanism remains consistent even with different rules for agents entering or leaving. The study suggests that this concept applies broadly to various scenarios beyond just the specific model tested.