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In speculative markets, risk-free profit opportunities are eliminated by traders exploiting them. Markets are therefore often described as "informationally efficient", rapidly removing predictable price changes, and leaving only residual…

Trading and Market Microstructure · Quantitative Finance 2013-10-08 Felix Patzelt , Klaus R. Pawelzik

Accurately simulating human opinion dynamics is crucial for understanding a variety of societal phenomena, including polarization and the spread of misinformation. However, the agent-based models (ABMs) commonly used for such simulations…

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

Recently, some E-commerce sites launch a new interaction box called Tips on their mobile apps. Users can express their experience and feelings or provide suggestions using short texts typically several words or one sentence. In essence,…

Computation and Language · Computer Science 2017-08-02 Piji Li , Zihao Wang , Zhaochun Ren , Lidong Bing , Wai Lam

The $\textit{data market design}$ problem is a problem in economic theory to find a set of signaling schemes (statistical experiments) to maximize expected revenue to the information seller, where each experiment reveals some of the…

Computer Science and Game Theory · Computer Science 2023-11-01 Sai Srivatsa Ravindranath , Yanchen Jiang , David C. Parkes

Background: We study mechanisms underlying the collective emotional behavior of Bloggers by using the agent-based modeling and the parameters inferred from the related empirical data. Methodology/Principal Findings: A bipartite network of…

Social and Information Networks · Computer Science 2011-10-25 Marija Mitrović , Bosiljka Tadić

The dynamics of market prices is described as the evolution of opinions in the trading community regarding future market behavior. The price then is a function of the voting process of the market players in favor to raise or reduce the…

Statistical Finance · Quantitative Finance 2015-03-31 Elad Oster , Alexander Feigel

We investigate the financial market dynamics by introducing a heterogeneous agent-based opinion formation model. In this work, we organize the individuals in a financial market by their trading strategy, namely noise traders and…

Statistical Finance · Quantitative Finance 2022-12-28 Mateus F. B. Granha , André L. M. Vilela , Chao Wang , Kenric P. Nelson , H. Eugene Stanley

Narratives drive human behavior and lay at the core of geopolitics, but have eluded quantification that would permit measurement of their overlap and evolution. We present an interpretable model that integrates an established bag-of-words…

Signal Processing · Electrical Eng. & Systems 2025-11-25 Eric A. Bai , Minling Zhou , Ricardo Henao , Kyle M. Schwing , Lawrence Carin

Large language models (LLMs) have enabled agent-based systems that aim to automate scientific research workflows. Most existing approaches focus on fully autonomous discovery, where AI systems generate research ideas, conduct analyses, and…

Artificial Intelligence · Computer Science 2026-03-10 Chen Zhu , Xiaolu Wang

Financial forecasting plays an important role in making informed decisions for financial stakeholders, specifically in the stock exchange market. In a traditional setting, investors commonly rely on the equity research department for…

Statistical Finance · Quantitative Finance 2024-07-23 Sahar Arshad , Seemab Latif , Ahmad Salman , Rabia Latif

Networked environments shape how information embedded in narratives influences individual and group beliefs and behavior. This raises key questions about how group communication around narrative media impacts belief formation and how such…

Social and Information Networks · Computer Science 2025-11-03 Abha Jha , J. Hunter Priniski , Carolyn Steinle , Fred Morstatter

The study of social emergence has long been a central focus in social science. Traditional modeling approaches, such as rule-based Agent-Based Models (ABMs), struggle to capture the diversity and complexity of human behavior, particularly…

Computational Engineering, Finance, and Science · Computer Science 2025-10-21 Yuzhe Yang , Yifei Zhang , Minghao Wu , Kaidi Zhang , Yunmiao Zhang , Honghai Yu , Yan Hu , Benyou Wang

We have used agent-based modeling as our numerical method to artificially simulate a dynamic real economy where agents are rational maximizers of an objective function of Cobb-Douglas type. The economy is characterised by heterogeneous…

Theoretical Economics · Economics 2024-01-17 Subhamon Supantha , Naresh Kumar Sharma

A new framework for asset price dynamics is introduced in which the concept of noisy information about future cash flows is used to derive the price processes. In this framework an asset is defined by its cash-flow structure. Each cash flow…

Pricing of Securities · Quantitative Finance 2013-01-31 Dorje C. Brody , Lane P. Hughston , Andrea Macrina

The increasing influence of unstructured external information, such as news articles, on stock prices has attracted growing attention in financial markets. Despite recent advances, most existing newsbased forecasting models represent all…

Computational Engineering, Finance, and Science · Computer Science 2025-10-28 Jinwoong Kim , Sangjin Park

Significant digitalization of financial services in a short period of time has led to an urgent demand to have autonomous, transparent and real-time credit risk decision making systems. The traditional machine learning models are effective…

Artificial Intelligence · Computer Science 2026-01-06 Chandra Sekhar Kubam

We present an agent based model of a single asset financial market that is capable of replicating several non-trivial statistical properties observed in real financial markets, generically referred to as stylized facts. While previous…

Computational Finance · Quantitative Finance 2017-04-12 Roberto Mota Navarro , Hernán Larralde Ridaura

Simulating consumer decision-making is vital for designing and evaluating marketing strategies before costly real-world deployment. However, post-event analyses and rule-based agent-based models (ABMs) struggle to capture the complexity of…

Artificial Intelligence · Computer Science 2025-10-22 Man-Lin Chu , Lucian Terhorst , Kadin Reed , Tom Ni , Weiwei Chen , Rongyu Lin

This work provides a starting point for researchers interested in gaining a deeper understanding of the big picture of artificial intelligence (AI). To this end, a narrative is conveyed that allows the reader to develop an objective view on…

Artificial Intelligence · Computer Science 2021-03-23 Noah Klarmann