Derivation of one-dimensional hydrodynamic model for stock price evolution
Nicolae Suciu2000, Physica A: Statistical Mechanics and its Applications
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Abstract
It was proved that balance equations for systems with corpuscular structure can be derived if a kinematic description by piece-wise analytic functions is available . This article presents a rigorous derivation of an one-dimensional hydrodynamic model for the stock price evolution. The kinematic description is given by a set of time functions describing the evolution of the stock price.
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