The magnet effect of price limits: an agent-based approach

• Main Authors: Dong, Xinyue, Chen, Tao, Gao, Tian, Li, Honggang, Li, Youwei
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2025
• Subjects: Social Sciences; Magnet effect; Price limits
• Online Access: https://hdl.handle.net/10356/182374
• Institution: Nanyang Technological University

In this paper, we study the magnet effect within the context of circuit breaker events that transpired in global stock markets during March 2020. Our analysis encompasses nine such events across six countries. Employing a time-distanced quadratic function to model trading activities leading up to li...