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AbstractIn contrast with the canonical models of financial markets with heterogeneous agents,, Naimzada and Ricchiuti, (, ) show that the interaction of groups of agents who have the same trading rule but present different beliefs about the fundamental value could be a source of instability. In this paper, differently from, Naimzada and Ricchiuti, (, ), we assume that the market maker employs a so‐called multiplicative price mechanism (Tuinstra, ; Zhu et al., ). We show that the occurrence of heterogeneity has an ambiguous role: it may either stabilize or destabilize the market.