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We investigate the volatility return intervals in the NYSE and FOREX markets. We explain previous empirical findings using a model based on the interacting agent hypothesis instead of the widely-used efficient market hypothesis. We derive…

General Finance · Quantitative Finance 2016-10-26 Vygintas Gontis , Shlomo Havlin , Aleksejus Kononovicius , Boris Podobnik , H. Eugene Stanley

Agent-based modeling is a computational dynamic modeling technique that may be less familiar to some readers. Agent-based modeling seeks to understand the behaviour of complex systems by situating agents in an environment and studying the…

Multiagent Systems · Computer Science 2023-04-19 G. Wade McDonald , Nathaniel D. Osgood

Agent-Based Models (ABM) are computational scenario-generators, which can be used to predict the possible future outcomes of the complex system they represent. To better understand the robustness of these predictions, it is necessary to…

General Economics · Economics 2022-08-08 Karl Naumann-Woleske , Max Sina Knicker , Michael Benzaquen , Jean-Philippe Bouchaud

PRAM puts agent-based models on a sound probabilistic footing as a basis for integrating agent-based and probabilistic models. It extends the themes of probabilistic relational models and lifted inference to incorporate dynamical models and…

Artificial Intelligence · Computer Science 2019-02-18 Paul Cohen

In this paper, we develop a variational method to track and make predictions about a real-world system from continuous imperfect observations about this system, using an agent-based model that describes the system dynamics. By combining the…

Multiagent Systems · Computer Science 2016-05-17 Wen Dong

The rapidly growing field of network analytics requires data sets for use in evaluation. Real world data often lack truth and simulated data lack narrative fidelity or statistical generality. This paper presents a novel, mixed-membership,…

Social and Information Networks · Computer Science 2013-09-09 Garrett Bernstein , Kyle O'Brien

We introduce a new software toolbox for agent-based simulation. Facilitating rapid prototyping by offering a user-friendly Python API, its core rests on an efficient C++ implementation to support simulation of large-scale multi-agent…

Computational Finance · Quantitative Finance 2022-09-22 Peter Belcak , Jan-Peter Calliess , Stefan Zohren

The paper considers the problem of distributed adaptive linear parameter estimation in multi-agent inference networks. Local sensing model information is only partially available at the agents and inter-agent communication is assumed to be…

Optimization and Control · Mathematics 2012-08-07 Soummya Kar , Jose' M. F. Moura , H. Vincent Poor

In this paper we develop a new form of agent-based model for limit order books based on heterogeneous trading agents, whose motivations are liquidity driven. These agents are abstractions of real market participants, expressed in a…

Statistical Finance · Quantitative Finance 2015-01-20 Efstathios Panayi , Gareth Peters

In this study, we propose a novel human-like memory architecture designed for enhancing the cognitive abilities of large language model based dialogue agents. Our proposed architecture enables agents to autonomously recall memories…

Human-Computer Interaction · Computer Science 2024-04-02 Yuki Hou , Haruki Tamoto , Homei Miyashita

Inspired by the cognitive science theory of the explicit human memory systems, we have modeled an agent with short-term, episodic, and semantic memory systems, each of which is modeled with a knowledge graph. To evaluate this system and…

Artificial Intelligence · Computer Science 2026-05-19 Taewoon Kim , Michael Cochez , Vincent François-Lavet , Mark Neerincx , Piek Vossen

In the present work we introduce a novel multi-agent model with the aim to reproduce the dynamics of a double auction market at microscopic time scale through a faithful simulation of the matching mechanics in the limit order book. The…

Trading and Market Microstructure · Quantitative Finance 2015-05-18 Marco Bartolozzi

Based on criteria of mathematical simplicity and consistency with empirical market data, a model with volatility driven by fractional noise has been constructed which provides a fairly accurate mathematical parametrization of the data.…

Statistical Finance · Quantitative Finance 2010-08-31 R. Vilela Mendes

Von Neuman's work on universal machines and the hardware development have allowed the simulation of dynamical systems through a large set of interacting agents. This is a bottom-up approach which tries to derive global properties of a…

Graphics · Computer Science 2007-05-23 Gilson A. Giraldi , Luis C. da Costa , Adilson V. Xavier , Paulo S. Rodrigues

There is great potential to be explored regarding the use of agent-based modelling and simulation as an alternative paradigm to investigate early-stage cancer interactions with the immune system. It does not suffer from some limitations of…

Multiagent Systems · Computer Science 2015-06-22 Grazziela P Figueredo , Peer-Olaf Siebers , Markus R Owen , Jenna Reps , Uwe Aickelin

Earlier we proposed the stochastic point process model, which reproduces a variety of self-affine time series exhibiting power spectral density S(f) scaling as power of the frequency f and derived a stochastic differential equation with the…

Physics and Society · Physics 2008-12-02 V. Gontis , B. Kaulakys

In model-based learning, an agent's model is commonly defined over transitions between consecutive states of an environment even though planning often requires reasoning over multi-step timescales, with intermediate states either…

Machine Learning · Computer Science 2020-10-06 Alexey Zakharov , Matthew Crosby , Zafeirios Fountas

Reinforcement Learning has emerged as a promising framework for developing adaptive and data-driven strategies, enabling market makers to optimize decision-making policies based on interactions with the limit order book environment. This…

Trading and Market Microstructure · Quantitative Finance 2026-02-17 Rafael Zimmer , Oswaldo Luiz do Valle Costa

A growing part of the behavioral finance literature has addressed some of the stylized facts of financial time series as macroscopic patterns emerging from herding interactions among groups of agents with heterogeneous trading strategies…

Physics and Society · Physics 2015-09-28 Adrián Carro , Raúl Toral , Maxi San Miguel

This paper introduces an agent-based artificial financial market in which heterogeneous agents trade one single asset through a realistic trading mechanism for price formation. Agents are initially endowed with a finite amount of cash and a…

Statistical Mechanics · Physics 2009-11-07 Marco Raberto , Silvano Cincotti , Sergio M. Focardi , Michele Marchesi