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Commonly used limit order book attributes are empirically considered based on NASDAQ ITCH data. It is shown that some of them have the properties drastically different from the ones assumed in many market dynamics study. Because of this…

Trading and Market Microstructure · Quantitative Finance 2016-03-31 Vladislav Gennadievich Malyshkin , Ray Bakhramov

One popular approach to model the limit order books dynamics of the best bid and ask at level-1 is to use the reduced-form diffusion approximations. It is well known that the biggest contributing factor to the price movement is the…

Trading and Market Microstructure · Quantitative Finance 2016-12-13 Tzu-Wei Yang , Lingjiong Zhu

We introduce a stochastic heterogeneous interacting-agent model for the short-time non-equilibrium evolution of excess demand and price in a stylized asset market. We consider a combination of social interaction within peer groups and…

General Finance · Quantitative Finance 2009-07-20 Gunter M. Schütz , Fernando Pigeard de Almeida Prado , Rosemary J. Harris , Vladimir Belitsky

This paper describes simulations and analysis of flash crash scenarios in an agent-based modelling framework. We design, implement, and assess a novel high-frequency agent-based financial market simulator that generates realistic…

Trading and Market Microstructure · Quantitative Finance 2024-04-23 Kang Gao , Perukrishnen Vytelingum , Stephen Weston , Wayne Luk , Ce Guo

From autonomous driving to package delivery, ensuring safe yet efficient multi-agent interaction is challenging as the interaction dynamics are influenced by hard-to-model factors such as social norms and contextual cues. Understanding…

Systems and Control · Electrical Eng. & Systems 2026-03-11 Isaac Remy , David Fridovich-Keil , Karen Leung

Running agent-based models (ABMs) is a burdensome computational task, specially so when considering the flexibility ABMs intrinsically provide. This paper uses a bundle of model configuration parameters along with obtained results from a…

Multiagent Systems · Computer Science 2020-01-14 Bernardo Alves Furtado

We introduce ABIDES, an Agent-Based Interactive Discrete Event Simulation environment. ABIDES is designed from the ground up to support AI agent research in market applications. While simulations are certainly available within trading firms…

Multiagent Systems · Computer Science 2019-04-30 David Byrd , Maria Hybinette , Tucker Hybinette Balch

The study of emergent behaviors in large language model (LLM)-driven multi-agent systems is a critical research challenge, yet progress is limited by a lack of principled methodologies for controlled experimentation. To address this, we…

Artificial Intelligence · Computer Science 2025-10-13 So Kuroki , Yingtao Tian , Kou Misaki , Takashi Ikegami , Takuya Akiba , Yujin Tang

The intent of control argumentation frameworks is to specifically model strategic scenarios from the perspective of an agent by extending the standard model of argumentation framework in a way that takes unquantified uncertainty regarding…

Artificial Intelligence · Computer Science 2022-10-24 Minal Suresh Patil

With an increasing use of data-driven models to control robotic systems, it has become important to develop a methodology for validating such models before they can be deployed to design a controller for the actual system. Specifically, it…

Systems and Control · Computer Science 2018-03-28 Somil Bansal , Shromona Ghosh , Alberto Sangiovanni-Vincentelli , Sanjit A. Seshia , Claire J. Tomlin

Order book imbalance (OBI) - buy orders minus sell orders near the best quote - measures supply-demand imbalance that can move prices. OBI is positively correlated with returns, and some investors try to use it to improve performance. Large…

Computational Finance · Quantitative Finance 2025-09-23 Shuto Endo , Takanobu Mizuta , Isao Yagi

Spatial patterns arising from the collective behavior of individual agents are present across biological systems. While agent-based models offer a natural framework for uncovering unknown agent (e.g., cell) interactions, these stochastic…

Quantitative Methods · Quantitative Biology 2026-05-19 Yue Liu , Alexandria Volkening

In this paper, our objective is to develop a multi-agent financial system that incorporates simulated trading, a technique extensively utilized by financial professionals. While current LLM-based agent models demonstrate competitive…

Artificial Intelligence · Computer Science 2025-10-07 Xiangyu Li , Yawen Zeng , Xiaofen Xing , Jin Xu , Xiangmin Xu

We propose a unified mean-field framework that bridges the dynamics of informal financial markets and formal markets governed by Limit Order Books (LOBs). Both settings are modeled as interacting particle systems on a 1D price lattice, with…

Statistical Mechanics · Physics 2025-12-05 Alvaro Navarro-Rubio , Alejandro Lage-Castellanos

We present a class of macroscopic models of the Limit Order Book to simulate the aggregate behaviour of market makers in response to trading flows. The resulting models are solved numerically and asymptotically, and a class of similarity…

Trading and Market Microstructure · Quantitative Finance 2020-12-09 Jan Rosenzweig

A class of heterogeneous agent models is investigated where investors switch trading position whenever their motivation to do so exceeds some critical threshold. These motivations can be psychological in nature or reflect behaviour…

Computational Physics · Physics 2009-11-13 R. Cross , M. Grinfeld , H. Lamba , T. Seaman

This paper presents a multi-agent reinforcement learning algorithm to represent strategic bidding behavior in freight transport markets. Using this algorithm, we investigate whether feasible market equilibriums arise without any central…

Machine Learning · Computer Science 2021-02-19 Wouter van Heeswijk

Quantitative finance has had a long tradition of a bottom-up approach to complex systems inference via multi-agent systems (MAS). These statistical tools are based on modelling agents trading via a centralised order book, in order to…

Trading and Market Microstructure · Quantitative Finance 2019-10-18 J. Lussange , I. Lazarevich , S. Bourgeois-Gironde , S. Palminteri , B. Gutkin

This paper reports the effort of using agent-based mix-game model to predict financial time series. It introduces simple generic algorithm into the prediction methodology, and gives an example of its application to forecasting Shanghai…

Physics and Society · Physics 2007-05-23 Chengling Gou

Risk management resulting from the actions and states of the different elements making up a operating room is a major concern during a surgical procedure. Agent-based simulation shows an interest through its interaction concepts,…

Artificial Intelligence · Computer Science 2020-07-23 Bruno Perez , Julien Henriet , Christophe Lang , Laurent Philippe