Samenvatting:
Nonlinear dynamic models describing fluctuations in financial markets will
be discussed. Financial markets are viewed as complex evolving systems
consisting of many traders having different expectations or `beliefs' about
future earnings and prices of stocks. Traders use different trading
strategies, such as fundamental versus technical analysis. Agents choose
their prediction or trading strategy from a finite set and revise their
beliefs according to evolutionary fitness measured by accumulated realized
profits or wealth. Bifurcation routes to chaos and strange attractors arise
when traders become more sensitive to differences in fitness.