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As automated trading gains traction in the financial market, algorithmic investment strategies are increasingly prominent. While Large Language Models (LLMs) and Agent-based models exhibit promising potential in real-time market analysis…

Multiagent Systems · Computer Science 2025-02-20 Xiangyu Li , Yawen Zeng , Xiaofen Xing , Jin Xu , Xiangmin Xu

The reproduction of realistic dynamics in financial markets is of great significance, as it enhances our understanding of market evolution beyond other physical processes, and facilitates the development and backtesting of investment…

Multiagent Systems · Computer Science 2025-10-14 Tianlang He , Fengming Zhu , Keyan Lu , Chang Xu , Yang Liu , Weiqing Liu , Fangzhen Lin , S. -H. Gary Chan , Jiang Bian

Financial market is an example of complex system, which is characterized by a highly intricate organization and the emergence of collective behavior. In this paper, we quantify this emergent dynamics in the financial market by using…

General Finance · Quantitative Finance 2011-09-07 Thomas Kauê Dal'Maso Peron , Francisco Aparecido Rodrigues

Large distributed multiagent systems are characterized by vast numbers of agents trying to gain access to limited resources in an unpredictable environment. Agents in these system continuously switch strategies in order to opportunistically…

adap-org · Physics 2008-02-03 Michael Youssefmir , Bernardo Huberman

Designing a financial market that works well is very important for developing and maintaining an advanced economy, but is not easy because changing detailed rules, even ones that seem trivial, sometimes causes unexpected large impacts and…

Trading and Market Microstructure · Quantitative Finance 2021-01-08 Takanobu Mizuta

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 rapid development of sophisticated machine learning methods, together with the increased availability of financial data, has the potential to transform financial research, but also poses a challenge in terms of validation and…

Computational Finance · Quantitative Finance 2025-05-29 Mateusz Wilinski , Anubha Goel , Alexandros Iosifidis , Juho Kanniainen

Decision making can be difficult when there are many actors (or agents) who may be coordinating or competing to achieve their various ideas of the optimum outcome. Here I present a simple decision making model with an explicitly…

Multiagent Systems · Computer Science 2024-04-29 Paul Kinsler

We analyze the dynamics of agent--based models (ABMs) from a Markovian perspective and derive explicit statements about the possibility of linking a microscopic agent model to the dynamical processes of macroscopic observables that are…

Adaptation and Self-Organizing Systems · Physics 2012-07-11 Sven Banisch , Ricardo Lima , Tanya Araújo

The field of artificial intelligence (AI) agents is evolving rapidly, driven by the capabilities of Large Language Models (LLMs) to autonomously perform and refine tasks with human-like efficiency and adaptability. In this context,…

Statistical Finance · Quantitative Finance 2025-08-18 Tianjiao Zhao , Jingrao Lyu , Stokes Jones , Harrison Garber , Stefano Pasquali , Dhagash Mehta

Financial asset markets are sociotechnical systems whose constituent agents are subject to evolutionary pressure as unprofitable agents exit the marketplace and more profitable agents continue to trade assets. Using a population of evolving…

Trading and Market Microstructure · Quantitative Finance 2020-08-05 David Rushing Dewhurst , Michael Vincent Arnold , Colin Michael Van Oort

We review the statistical mechanics approach to the study of the emerging collective behavior of systems of heterogeneous interacting agents. The general framework is presented through examples is such contexts as ecosystem dynamics and…

Physics and Society · Physics 2007-05-23 Andrea De Martino , Matteo Marsili

Due to the COVID-19 pandemic, the global supply chain is disrupted at an unprecedented scale under uncertain and unknown trends of labor shortage, high material prices, and changing travel or trade regulations. To stay competitive,…

Multiagent Systems · Computer Science 2022-11-02 Mingjie Bi , Gongyu Chen , Dawn M. Tilbury , Siqian Shen , Kira Barton

Financial markets provide an ideal frame for studying decision making in crowded environments. Both the amount and accuracy of the data allows to apply tools and concepts coming from physics that studies collective and emergent phenomena or…

Statistical Finance · Quantitative Finance 2013-02-14 Mario Gutiérrez-Roig , Josep Perelló

Financial trading has been a challenging task, as it requires the integration of vast amounts of data from various modalities. Traditional deep learning and reinforcement learning methods require large training data and often involve…

Trading and Market Microstructure · Quantitative Finance 2024-11-15 Sorouralsadat Fatemi , Yuheng Hu

This paper introduces a novel approach of clustering, which is based on group consensus of dynamic linear high-order multi-agent systems. The graph topology is associated with a selected multi-agent system, with each agent corresponding to…

Systems and Control · Computer Science 2017-06-13 Ning Cai , Chen Diao , M. Junaid Khan

We investigate in detail a recent model of colliding mobile agents [Phys. Rev. Lett.~96, 088702], used as an alternative approach to construct evolving networks of interactions formed by the collisions governed by suitable dynamical rules.…

Physics and Society · Physics 2013-01-01 Marta C. González , Pedro G. Lind , Hans J. Herrmann

Cooperative multi-agent reinforcement learning faces significant challenges in effectively organizing agent relationships and facilitating information exchange, particularly when agents need to adapt their coordination patterns dynamically.…

Multiagent Systems · Computer Science 2025-05-26 Chiqiang Liu , Dazi Li

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

We propose a method for modeling and learning turn-taking behaviors for accessing a shared resource. We model the individual behavior for each agent in an interaction and then use a multi-agent fusion model to generate a summary over the…

Machine Learning · Computer Science 2018-12-12 Katherine Metcalf , Barry-John Theobald , Nicholas Apostoloff