Behavior simulation on securities equilibrium price and volume with heterogeneity

This paper proposes a new perspective to consider equilibrium system with price and quantity based on classical demand-supply analysis, combining with modern financial assets pricing theory. In this system, investors are heterogeneous, their valuations about the assets are different, and they have different demand or supply function. The money wealth and assets quantity hold by investors in the market affect equilibrium, equilibrium price and trade volume are determined at the same time. Through simulation on this system, it turns out the method can interpret much phenomena in real market.