Price formation modeling with PDE: from Boltzmann to free boundaries

old_uid13256
titlePrice formation modeling with PDE: from Boltzmann to free boundaries
start_date2014/01/14
schedule15h
onlineno
location_infosalle 11
summaryWe present a derivation of the Lasry-Lions free boundary price formation model through a scaling limit of a Boltzmann type system for the buyer and vendor densities. This Boltzmann system is obtained by simple and very heuristic kinetic modeling, describing an economic market where large numbers of buyers and vendors trade one good continuously.
responsiblesBerestycki, Nadal, Rosenstiehl