(a) EGX 30
(b) MOD1 ()
(c) MOD2 ()
Figure 1: The evolution of index prices (log-prices) of (a) EGX 30, (b) the MOD1, and (c) the MOD2, respectively. The dashed lines give a benchmark of the 50 percent deviation from the fundamentals. (c) shows the extent of our model to produce random walk prices and bubbles and crashes. Comparing Panels (b) and (c) reveals that the model populated with loss aversion chartists is more stable than that with loss-neutral chartists.