Abstract: This paper develops the analysis on heterogeneous beliefs and rational routes to randomness in discrete-time models to a continuous-time model of asset pricing. A stochastic model of asset pricing in continuous-time with heterogeneous agents, who are allowed to switch among two types of strategies, fundamentalists and chartists, based on accumulated profits of the strategies, is presented. Applying the stability and bifurcation theory of the delay differential equations, for the deterministic model, the impact of switching and time horizon, used by the chartists on the market stability, is examined. For the linearized perturbed stochastic system, we identify the differential equations for the square mean values and we study their dynamics. Some numerical simulations and conclusions are provided.

Brief Biography of the Speaker:
Mihaela Neamtu was born in Timisoara (Romania) on 1971. She graduated in 1995 the Faculty of Mathematics, West University of Timisoara. In 2001 she obtained the title of Ph.D in mathematics. She followed a didactic career at the Faculty of Economics and Business Administration, West University of Timisoara, Romania and she is currently Professor. She has been a visiting Professor for short periods of time at The Nottingham Trent University, Economics & Politics (Great Britain) and Faculty of Mathematics, Bonn (Germany). Professor Mihaela Neamtu has over 80 articles published in Journals and Proceedings of the International Conferences and 4 monographs; she has been a regular referee of papers for several International Journals and a reviewer of Mathematical Reviews (MathSciNet). She has been participating in 10 multiannual grants (1 of them is international), in 8 as a member and in 2 as a director.