The Behavior Finance Studies Based On Non-monotone Incidence Rate With Delay Item

Investor behavior has an important impact on the stock market.This paper starts with investor behavior and uses the differential dynamics model to simulate the operation flow of the Shanghai stock market.By comparing the four test models of the herd effect,the CCK model was selected to test the Shanghai stock market,and it was found that there was a significant of herding behavior.The differential dynamics model was promoted and applied to financial research,and the diffusion process was combined with the stock market investor’s herd behavior to establish a non-monotonic differential dynamic model with delay item.The non-monotonic rate is due to the limitation of contact between market investors,so it is unreasonable to assume a linear increase in the rate of infection and the number of investors.Lyapunov function and Hurwitz method are used to prove the existence,local stability and global stability of the market investor equilibrium point,respectively.Then,the control variable method is used to simulate the parameters,the influence of various parameters of the model on market operation flow is analyzed.We found that the greater the effective rate of fund infection,the shorter time required for the system to reach equilibrium point;the infection rate of funds is 0.3,which is a special node,which is in line with the current capital allocation ratio of the Chinese market;the removal rate of funds range 0.01 to 0.13;the delay item ranges 2 to 6.