The dynamics of asset price in the markets that involve groups with diffrent structure

In this thesis study, examining asset price dynamics with dynamical systems approach is aimed. In the literature studies which this thesis is based on, unlike the facts that are accepted theoratically in the financial markets, the factors that are rountinely encountered by investors in practical level, are taken into consideration. This factors can be listed as that there is a limited amount of cash and share in the markets, price trend affects investors through buying and selling together with the asset value, different investors may asses different values for the same share. In this thesis study, the study that is issued by Caginalp and Merdan in 2007 is grounded on [12]. In the mathematical model of mentioned study, two groups which have different motivations and strategies and one type of share which is traded between these two groups are considered. In this thesis study, the mathematical model in the study [12] is improved and rearranged to be able to make a better estimation for the asset price rather than the existing literature studies. The idea that the equation which determines the price change depending on the excess demand function in the literature studies according to the fundamental principles of classical microeconomy is falling behind in the markets which include more information about supply and demand functions has been the starting point of this thesis study. Because the existing excess demand function makes price estimation using only the values of the supply and demand functions at a price. This situtation causes not to be able to make a good estimation for the asset price in the markets which present more information about supply and demand functions. Because of this reason, a new model is constructed that can be used in markets which contains more information about supply and demand functions, by using the improved approach for the price change that Caginalp proposed in study [1].Key words: Classical microeconomy, supply, demand, dynamical systems