Based On The Limit Of Price Agent Simulation

Price Limits mechanism is one of the most important regulatory measures for maintaining the stock market stabilizing. Recently, there has been fruitful research on Price Limits. Empirical study is traditionally used for Price Limits, but it’s hard to remove other interference factors and only can be done after the implementation of the policy. We can’t forecast the effects if the policy is carried out. With the rapid development of computer technology, computer technology on studying economic phenomena has been applied.In this paper, the author built an artificial stock market composed of chartists and fundamentalists, based on the Agent-based computational finance under the assumption that investors are in different structure and different behavior. Using MATLAB as software platform, the statistical characteristics of stock price is similar to the real market which presents Bubbles and crashes、excessive volatility、fat tail and cluster phenomena. Adding Price Limits in the model, the author found out the Price Limits’ effect on the price of stock from three aspects of market efficiency, volatility and liquidity. And try to analysis individual behavior and Short Selling Constraints on the effect of policy implementation on Price Limits. Finally put forward corresponding policy recommendations.This paper designs a good experiment for further study.