| The risk return relationship in investment caused much intention in the economic. The Bowman Paradox broke the monopoly position from the conventional economics on this issue. We designed a series of experiments as well as an agent based model on the risk return relationship. Both of the experiments and the agent based models show that, the agents with high risk always appear low return, that is, negative correlation trend in risk return relationship. Agent based model also shows that the agents can be obviously divided into two groups. The one who always prefer choosing a room with a high expected return performed high risk high return, but others performed high risk low return. In this paper, we continue analyzing this issue on the theoretical according to the rules in the experiments and modeling, we received the same conclusion and also proved that the preference can affect the risk-return relationship.Then we set the investment weight as the same for all agents. In this condition, different investment weight can be seen as the wealth accumulation index. Using the revised agent based model, we can interpret the Matthew Effect, the process of enlarging the gap between the rich and the poor. |
