Market Impact — Price-Impact Propagator Model

Large orders move prices. The propagator model (Bouchaud et al.) describes market impact: I(t) = Y · Q^δ · G(t), where G(t)∼t^β is a memory kernel. Concave impact (square-root law, δ≈0.5) with slow decay creates realistic price paths and transient vs permanent impact.

Impact exponent δδ = 0.50
Decay exponent ββ = 0.30
Order size QQ = 1000
Noise σσ = 0.50