Effect of rumor propagation on stock market dynamics using cellular automata
In this paper, we build a cellular automaton model for the stock market to illustrate the complexity in the stock market by introducing variables for reflecting stability of the market. We introduced the concepts of rumor propagation to represent the market dynamics. Using this model, behavior of the market participants and their effect on the market dynamics are analyzed. Various constraints are introduced to counter-dynamics of rumor propagation for reflecting the close behavior with stock market and results show the relationship between the rumor strength and the behavior of stock market.