In a classic paper on the theory of conflict,* L. F. Richardson claimed that the proportion p of a population advocating war or other aggressive action at a time t satisfies

where k and C are positive constants. Speculative day-trading in the stock market can be regarded as aggressive action. Suppose that initially, 1/200 of total daily market volume is attributed to day trading and that 4 weeks later, the proportion is 1/100. When will the proportion be increasing most rapidly? What will the proportion be at that time?

Transcribed Image Text:

p(t) Cekt 1 + Cekt