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Advances in computing power and data availability have led to growing sophistication in mechanistic mathematical models of social dynamics. Increasingly these models are used to inform real-world policy decision-making, often with…

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

The practical utility of agent-based models in decision-making relies on their capacity to accurately replicate populations while seamlessly integrating real-world data streams. Yet, the incorporation of such data poses significant…

Multiagent Systems · Computer Science 2024-04-22 Ayush Chopra , Arnau Quera-Bofarull , Nurullah Giray-Kuru , Michael Wooldridge , Ramesh Raskar

The paper proposes a computational adaptation of the principles underlying principal component analysis with agent based simulation in order to produce a novel modeling methodology for financial time series and financial markets. Goal of…

Trading and Market Microstructure · Quantitative Finance 2021-01-11 Filippo Neri

There are multiple explanations for stylized facts in high-frequency trading, including adaptive and informed agents, many of which have been studied through agent-based models. This paper investigates an alternative explanation by…

Computational Finance · Quantitative Finance 2025-08-29 Mateusz Wilinski , Juho Kanniainen

Freight transportation modeling often struggles with data limitations, especially in accurately representing complex supplier selection processes and their impact on network flows. This research addresses this critical gap by developing a…

Optimization and Control · Mathematics 2026-05-07 Abdelrahman Ismael , Taner Cokyasar

This paper outlines an agent-based model of a simple financial market in which a single asset is available for trade by three different types of traders. The model was first introduced in the PhD thesis of one of the authors, see reference…

Trading and Market Microstructure · Quantitative Finance 2019-01-17 Elena Green , Daniel M. Heffernan

We advocate the development of a discipline of interacting with and extracting information from models, both mathematical (e.g. game-theoretic ones) and computational (e.g. agent-based models). We outline some directions for the development…

Multiagent Systems · Computer Science 2021-02-24 Gabriel Istrate

Agent-based models provide a constructive approach to studying emergent dynamics in life-like systems composed of interacting, adaptive agents. Financial markets serve as a canonical example of such systems, where collective price dynamics…

Computational Finance · Quantitative Finance 2026-04-28 Ryuji Hashimoto , Ryosuke Takata , Masahiro Suzuki , Yuki Tanaka , Kiyoshi Izumi

We build an agent-based model to study how the interplay between low- and high-frequency trading affects asset price dynamics. Our main goal is to investigate whether high-frequency trading exacerbates market volatility and generates flash…

Trading and Market Microstructure · Quantitative Finance 2014-02-11 Sandrine Jacob Leal , Mauro Napoletano , Andrea Roventini , Giorgio Fagiolo

Investors and regulators can greatly benefit from a realistic market simulator that enables them to anticipate the consequences of their decisions in real markets. However, traditional rule-based market simulators often fall short in…

Trading and Market Microstructure · Quantitative Finance 2024-04-01 Zhiyuan Yao , Zheng Li , Matthew Thomas , Ionut Florescu

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

Simultaneous reproduction of all financial stylized facts is so difficult that most existing stochastic process-based and agent-based models are unable to achieve the goal. In this study, by extending the decision-making structure of…

Statistical Finance · Quantitative Finance 2019-05-22 Kei Katahira , Yu Chen , Gaku Hashimoto , Hiroshi Okuda

Exploring complex adaptive financial trading environments through multi-agent based simulation methods presents an innovative approach within the realm of quantitative finance. Despite the dominance of multi-agent reinforcement learning…

Computational Finance · Quantitative Finance 2024-05-07 Alicia Vidler , Toby Walsh

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 Modelling (ABM) is a computational framework for simulating the behaviours and interactions of autonomous agents. As Agent Based Models are usually representative of complex systems, obtaining a likelihood function of the model…

Artificial Intelligence · Computer Science 2021-07-09 D. Townsend

The high-order complexity of human behaviour is likely the root cause of extreme difficulty in financial market projections. We consider that behavioural simulation can unveil systemic dynamics to support analysis. Simulating diverse human…

Trading and Market Microstructure · Quantitative Finance 2025-06-03 Cheng Wang , Chuwen Wang , Shirong Zeng , Jianguo Liu , Changjun Jiang

Simulation with agent-based models is increasingly used in the study of complex socio-technical systems and in social simulation in general. This paradigm offers a number of attractive features, namely the possibility of modeling emergent…

Physics and Society · Physics 2015-10-27 Giovanni Luca Ciampaglia

An agent-based model for firms' dynamics is developed. The model consists of firm agents with identical characteristic parameters and a bank agent. Dynamics of those agents is described by their balance sheets. Each firm tries to maximize…

General Finance · Quantitative Finance 2009-01-14 Hiroshi Iyetomi , Hideaki Aoyama , Yoshi Fujiwara , Yuichi Ikeda , Wataru Souma

Agent-based modelling is a powerful tool when simulating human systems, yet when human behaviour cannot be described by simple rules or maximising one's own profit, we quickly reach the limits of this methodology. Machine learning has the…

Multiagent Systems · Computer Science 2022-01-21 Georg Jäger , Daniel Reisinger