  An exact solution is presented to a model that mimics the crowding effect in
financial markets which arises when groups of agents share information. We show
that the size distribution of groups of agents has a power law tail with an
exponential cut-off. As the size of these groups determines the supply and
demand balance, this implies heavy tails in the distribution of price
variation. The moments of the distribution are calculated, as well as the
kurtosis. We find that the kurtosis is large for all model parameter values and
that the model is not self-organizing.
