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The Economy and Complexity Science: Part 2
Simplifying Complexity
Rail Stock Market Model
There was a radio stock market model in the economics literature this was due to Robert Lucas who's super bright theoretical economist at University of Chicago. The problem was it didn't work in other aspects for example there's no trading at all in this model everybody was identical so if one agent or one investor wanted to sell a stock think it would go down everyone was identical and they'd all want to sell. There are no times of immense volatility followed by quiescence which is a hallmark of rail stock markets what we did then was to take out the hyper rational identical investors and we slid in a module where each investor was in principle different They started off with different ideas or random ideas and some
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