The Role of Liquidity Individuals in the Decision-Making
We simulate social network games of a portfolio selection to analyze the role of liquidity individuals for the developments in individuals’ decision-making in financial markets. Liquidity individuals prove to be a significant element in the decision-making process of the entire network, as they keep the information of non-dominant strategies alive. Their role is especially significant under omniscient individuals, whereas a little less under non-omniscient individuals. As long as individuals do not lose the information of all the alternatives, their role is insignificant.
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