Market Dynamics When Agents Anticipate Correlation Breakdown

<table>All investors uninformed scenario-equilibria. (a) <svg height="16.237499" id="M255" style="vertical-align:-4.27245pt" version="1.1" viewbox="0 0 43.9375 16.237499" width="43.9375" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(.017,-0,0,-.017,.062,10.862)"><path d="M565 434q-29 -30 -107.5 -131t-125.5 -168q22 -126 55 -265q8 -35 12.5 -45.5t11.5 -10.5q26 0 76 59l23 -23q-77 -111 -134 -111q-42 0 -63 96l-43 222q-148 -211 -219 -335h-10q-30 45 9 103l209 291q-27 155 -42 214q-7 27 -11.5 35.5t-12.5 8.5q-19 0 -62 -57l-21 21
q73 110 126 110q18 0 31.5 -22.5t19.5 -52.5l35 -184l160 234l74 25z" id="x1D712"></path></g>
<g transform="matrix(.012,-0,0,-.012,9.95,16.175)"><path d="M384 0h-275v27q67 5 81.5 18.5t14.5 68.5v385q0 38 -7.5 47.5t-40.5 10.5l-48 2v24q85 15 178 52v-521q0 -55 14.5 -68.5t82.5 -18.5v-27z" id="x31"></path></g>
<g transform="matrix(.017,-0,0,-.017,21.013,10.862)"><path d="M512 230l-437 -233v58l378 199v2l-378 200v58l437 -233v-51z" id="x3E"></path></g><g transform="matrix(.017,-0,0,-.017,35.699,10.862)"><path d="M384 0h-275v27q67 5 81.5 18.5t14.5 68.5v385q0 38 -7.5 47.5t-40.5 10.5l-48 2v24q85 15 178 52v-521q0 -55 14.5 -68.5t82.5 -18.5v-27z" id="x31"></path></g>
</svg>, (b) <svg height="16.237499" id="M256" style="vertical-align:-4.27245pt" version="1.1" viewbox="0 0 53.912498 16.237499" width="53.912498" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink">
<g transform="matrix(.017,-0,0,-.017,.062,10.862)"><path d="M565 434q-29 -30 -107.5 -131t-125.5 -168q22 -126 55 -265q8 -35 12.5 -45.5t11.5 -10.5q26 0 76 59l23 -23q-77 -111 -134 -111q-42 0 -63 96l-43 222q-148 -211 -219 -335h-10q-30 45 9 103l209 291q-27 155 -42 214q-7 27 -11.5 35.5t-12.5 8.5q-19 0 -62 -57l-21 21
q73 110 126 110q18 0 31.5 -22.5t19.5 -52.5l35 -184l160 234l74 25z" id="x1D712"></path></g>
<g transform="matrix(.012,-0,0,-.012,9.95,16.175)"><path d="M384 0h-275v27q67 5 81.5 18.5t14.5 68.5v385q0 38 -7.5 47.5t-40.5 10.5l-48 2v24q85 15 178 52v-521q0 -55 14.5 -68.5t82.5 -18.5v-27z" id="x31"></path></g>
<g transform="matrix(.017,-0,0,-.017,21.013,10.862)"><path d="M512 -3l-437 233v51l437 233v-58l-378 -200v-2l378 -199v-58z" id="x3C"></path></g><g transform="matrix(.017,-0,0,-.017,35.699,10.862)"><path d="M535 230h-483v50h483v-50z" id="x2212"></path></g><g transform="matrix(.017,-0,0,-.017,45.678,10.862)"><path d="M384 0h-275v27q67 5 81.5 18.5t14.5 68.5v385q0 38 -7.5 47.5t-40.5 10.5l-48 2v24q85 15 178 52v-521q0 -55 14.5 -68.5t82.5 -18.5v-27z" id="x31"></path></g>
</svg>.</table>

Discrete Dynamics in Nature and Society

Market Dynamics When Agents Anticipate Correlation Breakdown

Figure 6