The Damped Fluctuations as a Base of Market Quotations

Economics and Management, No. 16, p. 1108, 2011

7 Pages Posted: 30 Aug 2011

See all articles by Magomet Yandiev

Magomet Yandiev

Moscow State University - Faculty of Economics

Date Written: May 30, 2011

Abstract

In this article, the author applied the formula of damped fluctuations to explain the process of market quotations. The result shows that assimilation by the market of any new information takes place alongside two simultaneous processes: a sudden wide spread in the quotation values, which then narrows and comes to nothing, and a gradually growing perception by the market of the new price level, that is, the quantitative measure of new information being assimilated.

Keywords: Pricing Model, Market Quotations, Information, Damped Fluctuations

JEL Classification: G12, G14

Suggested Citation

Yandiev, Magomet, The Damped Fluctuations as a Base of Market Quotations (May 30, 2011). Economics and Management, No. 16, p. 1108, 2011, Available at SSRN: https://ssrn.com/abstract=1919652

Magomet Yandiev (Contact Author)

Moscow State University - Faculty of Economics ( email )

1-46 Leninskiye Gory
Moscow, 119991
Russia
+79037699393 (Phone)

HOME PAGE: http://www.econ.msu.ru/departments/fincred/staff/M.I.Yandiev/

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