English
Related papers

Related papers: SHIFT: A Highly Realistic Financial Market Simulat…

200 papers

We present a prototype hybrid prediction market and demonstrate the avenue it represents for meaningful human-AI collaboration. We build on prior work proposing artificial prediction markets as a novel machine-learning algorithm. In an…

We present results on simulations of a stock market with heterogeneous, cumulative information setup. We find a non-monotonic behaviour of traders' returns as a function of their information level. Particularly, the average informed agents…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 Bence Toth , Enrico Scalas

Exchange markets are a significant type of market economy, in which each agent holds a budget and certain (divisible) resources available for trading. Most research on equilibrium in exchange economies is based on an environment of…

Computer Science and Game Theory · Computer Science 2024-10-10 Yusen Zheng , Yukun Cheng , Chenyang Xu , Xiaotie Deng

We present an experimental and simulated model of a multi-agent stock market driven by a double auction order matching mechanism. Studying the effect of cumulative information on the performance of traders, we find a non monotonic…

Physics and Society · Physics 2009-11-13 Bence Toth , Enrico Scalas , Juergen Huber , Michael Kirchler

New services based on the best-effort paradigm could complement the current deterministic services of an electronic financial exchange. Four crucial aspects of such systems would benefit from a hybrid stance: proper use of processing…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 David Lyback , Magnus Boman

As a typical representation of complex networks studied relatively thoroughly, financial market presents some special details, such as its nonconservation and opinions spreading. In this model, agents congregate to form some clusters, which…

Other Condensed Matter · Physics 2007-05-23 Jie Wang , Chun-Xia Yang , Pei-Ling Zhou , Ying-Di Jin , Tao Zhou , Bing-Hong Wang

We present a model describing the competition between information transmission and decision making in financial markets. The solution of this simple model is recalled, and possible variations discussed. It is shown numerically that despite…

Adaptation and Self-Organizing Systems · Physics 2009-10-31 R. D'Hulst , G. J. Rodgers

We present a simple order book mechanism that regulates an artificial financial market with self-organized criticality dynamics and fat tails of returns distribution. The model shows the role played by individual imitation in determining…

Trading and Market Microstructure · Quantitative Finance 2016-02-29 Alessio Emanuele Biondo , Alessandro Pluchino , Andrea Rapisarda

This paper studies four trading algorithms of a professional trader at a multilateral trading facility, observing a realistic two-sided limit order book whose dynamics are driven by the order book events. The identity of the trader can be…

Trading and Market Microstructure · Quantitative Finance 2015-01-13 Qinghua Li

We take inspiration from statistical physics to develop a novel conceptual framework for the analysis of financial markets. We model the order book dynamics as a motion of particles and define the momentum measure of the system as a way to…

Trading and Market Microstructure · Quantitative Finance 2023-08-21 Haochen Li , Maria Polukarova , Carmine Ventre

We study data exchange among strategic agents without monetary transfers, motivated by domains such as research consortia and healthcare collaborations where payments are infeasible or restricted. The central challenge is to reap the…

Computer Science and Game Theory · Computer Science 2026-02-13 Rashida Hakim , Christos Papadimitriou , Mihalis Yannakakis

This research proposes a novel arbitrage approach in multivariate pair trading, termed the Optimal Trading Technique (OTT). We present a method for selectively forming a "bucket" of fiat currencies anchored to cryptocurrency for monitoring…

Computational Engineering, Finance, and Science · Computer Science 2024-08-12 Hongshen Yang , Avinash Malik

Embedding microscopic sensors, computers and actuators into materials allows physical systems to actively monitor and respond to their environments. This leads to the possibility of creating smart matter, i.e., materials whose properties…

Condensed Matter · Physics 2008-02-03 Oliver Guenther , Tad Hogg , Bernardo A. Huberman

Major challenges for the transition of power systems do not only tackle power electronics but also communication technology, power market economy and user acceptance studies. Simulation is an important research method therein, as it helps…

Systems and Control · Computer Science 2018-07-03 Manfred Pöchacker , Anita Sobe , Wilfried Elmenreich

The rapid development and deployment of vehicle technologies offer opportunities to re-think the way traffic is managed. This paper capitalizes on vehicle connectivity and proposes an economic instrument and corresponding cooperative…

Systems and Control · Electrical Eng. & Systems 2022-08-02 DianChao Lin , Saif Eddin Jabari

Overwhelming majority of econometric models applied on a long term basis in the financial forex market do not work sufficiently well. The reason is that transaction costs and arbitrage opportunity are not included, as this does not simulate…

Statistical Finance · Quantitative Finance 2015-11-23 Richard Pinčák , Erik Bartoš

We introduce a new class of combinatorial markets in which agents have covering constraints over resources required and are interested in delay minimization. Our market model is applicable to several settings including scheduling, cloud…

Computer Science and Game Theory · Computer Science 2017-04-17 Nikhil Devanur , Jugal Garg , Ruta Mehta , Vijay V. Vazirani , Sadra Yazdanbod

The efficient market hypothesis (EMH) famously stated that prices fully reflect the information available to traders. This critically depends on the transfer of information into prices through trading strategies. Traders optimise their…

Mathematical Finance · Quantitative Finance 2025-01-14 Paolo Barucca , Flaviano Morone

In the modern web economy hyperlinks have already attained monetary value as incoming links to a web site can increase its visibility on major search engines. Thus links can be viewed as investment instruments that can be the subject of an…

Condensed Matter · Physics 2007-05-23 Boris Galitsky , Mark Levene

In a money exchange process involving a seller and a buyer, we develop a straightforward model encompassing conservative, non-conservative, and systems with or without debt. Our model integrates the Fermi function to capture the behavior of…

Dynamical Systems · Mathematics 2024-09-04 Hsin-Lun Li