A model in price formation
Tipus de documentProjecte Final de Màster Oficial
Condicions d'accésAccés obert
In this thesis a particular example of a price formation model was studied. The model consist of a (large) group of buyers and a (large) group of vendors trading a particular good at a certain price. The model is given by a nonlinear, parabolic free boundary evolution equation that describes the dynamical behaviour of buyers and vendors which in turn defines the price. The original model introduced by J.M Lasry and P. Lions always stabilizes so a modification of the original model was presented and studied.