Simulation Analysis of Impact of Complex Network on Herd Effect

Authors

Li Feng, 1. School of Business Administration, South China University of Technology, Guangzhou 510640, China; ;
Wei Ying, 2. Department of Business Administration, Jinan University, Guangzhou 510632, China;

Abstract

Abstract: Herd behavior is valuable but complicated. The impact of different type complex network on herd effect is analyzed by multi-agent modeling and simulation. In the model, herd behavior of decision-maker is modeled based on the advanced evidences from empirical study. Through simulation, not only the conclusions drawn from traditional mathematical modeling are verified, but also the whole evolving process of herd effect is inspected and the evolving speed related features can be used to evaluate performances of herd effect. More important, simulation results show the network structure of different type complex networks is one of the key factors for herd effect and heavy-tail effect. For instance, homogenous networks, i.e. regular grid network and E-R random network present a significant herd effect, small world network shows less herd effect, while heavy-tail effect can be found in scale free network environment. When combining with heterogeneous random network, the influence of non-linear herd behavior is not obvious for herd effect.

Recommended Citation

Feng, Li and Ying, Wei (2021) "Simulation Analysis of Impact of Complex Network on Herd Effect," Journal of System Simulation: Vol. 33: Iss. 3, Article 4.
DOI: 10.16182/j.issn1004731x.joss.19-0584
Available at: https://dc-china-simulation.researchcommons.org/journal/vol33/iss3/4

First Page

539

Revised Date

2020-04-02

DOI Link

https://doi.org/10.16182/j.issn1004731x.joss.19-0584

Last Page

553

CLC

TP391.3

Recommended Citation

Li Feng, Wei Ying. Simulation Analysis of Impact of Complex Network on Herd Effect[J]. Journal of System Simulation, 2021, 33(3): 539-553.

DOI

10.16182/j.issn1004731x.joss.19-0584