A differential evolution algorithm for parameter optimization of an asset flow model

  1. Prathumwan, W. Sawangtong, B. Wiwattanapatapheeand L.M. Giannini

In order to understand the behavior of the dynamic pricing in the market, we first present a mathematical model for the asset flow written as a system of ordinary differential equations under defined assumptions. In the model of asset flow differential equations (AFDEs), the equilibrium point and a stability condition are established. Forecasting of asset market prices has been increasingly attracting interest from a practical and theoretical perspective in the last three decades. So, an improved differential evolution algorithm is ratified to identify the parameters in the AFDE model. Minimizing the objective function gives an optimal set of the IDE model parameters which can be used in the AFDE model to predict the asset flow behavior in the near future by using the dynamics of the asset price of corn in the North-East of Thailand.