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We propose a general interpretation for long-range correlation effects in the activity and volatility of financial markets. This interpretation is based on the fact that the choice between `active' and `inactive' strategies is subordinated…

Disordered Systems and Neural Networks · Physics 2009-11-07 Irene Giardina , Jean-Philippe Bouchaud , Marc Mézard

The latent order book of \cite{donier2015fully} is one of the most promising agent-based models for market impact. This work extends the minimal model by allowing agents to exhibit mean-reversion, a commonly observed pattern in real…

Trading and Market Microstructure · Quantitative Finance 2020-09-07 Ismael Lemhadri

We introduce a minimal Agent Based Model with two classes of agents, fundamentalists (stabilizing) and chartists (destabilizing) and we focus on the essential features which can generate the stylized facts. This leads to a detailed…

Trading and Market Microstructure · Quantitative Finance 2008-12-02 V. Alfi , L. Pietronero , A. Zaccaria

Agent-based modeling plays an essential role in gaining insights into biology, sociology, economics, and other fields. However, many existing agent-based simulation platforms are not suitable for large-scale studies due to the low…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-04-25 Lukas Breitwieser , Ahmad Hesam , Fons Rademakers , Juan Gómez Luna , Onur Mutlu

In dealer markets, dealers provide prices at which they agree to buy and sell the assets and securities they have in their scope. With ever increasing trading volume, this quoting task has to be done algorithmically in most markets such as…

Trading and Market Microstructure · Quantitative Finance 2022-12-13 Alexander Barzykin , Philippe Bergault , Olivier Guéant

We propose a Markov jump process with the three-state herding interaction. We see our approach as an agent-based model for the financial markets. Under certain assumptions this agent-based model can be related to the stochastic description…

Trading and Market Microstructure · Quantitative Finance 2013-02-05 Aleksejus Kononovicius , Vygintas Gontis

Large language models (LLMs) have demonstrated remarkable capabilities in natural language tasks, yet their performance in dynamic, real-world financial environments remains underexplored. Existing approaches are limited to historical…

Machine Learning · Computer Science 2025-09-03 Tianmi Ma , Jiawei Du , Wenxin Huang , Wenjie Wang , Liang Xie , Xian Zhong , Joey Tianyi Zhou

We are exploring the enhancement of models of agent behaviour with more "human-like" decision making strategies than are presently available. Our motivation is to developed with a view to as the decision analysis and support for electric…

Multiagent Systems · Computer Science 2009-12-22 Yee Ming Chen , Bo-Yuan Wang , Hung-Ming Shiu

Quantitative analysis of empirical data from online social networks reveals group dynamics in which emotions are involved (\v{S}uvakov et al). Full understanding of the underlying mechanisms, however, remains a challenging task. Using…

Physics and Society · Physics 2012-05-30 Milovan Šuvakov , David Garcia , Frank Schweitzer , Bosiljka Tadić

This paper presents our methodology to simulate the behavior of the DeLend Platform. Such simulations are important to verify if the system is able to connect the different sets of agents linked to the platform in a functional manner. They…

Computational Finance · Quantitative Finance 2023-04-04 Frederico Dutilh Novaes , Gabriel de Abreu Madeira , Aurimar Cerqueira

We demonstrate that minority mechanisms arise in the dynamics of markets because of effects of price impact; accordingly the relative importance of minority and delayed majority mechanisms depends on the frequency of trading. We then use…

Statistical Mechanics · Physics 2008-12-02 Damien Challet , Tobias Galla

We consider a class of generalized capital asset pricing models in continuous time with a finite number of agents and tradable securities. The securities may not be sufficient to span all sources of uncertainty. If the agents have…

General Finance · Quantitative Finance 2012-10-23 Ulrich Horst , Michael Kupper , Andrea Macrina , Christoph Mainberger

The paper provides an introduction to agent-based modelling and simulation of social processes. Reader is introduced to the worldview underlying agent-based models, some basic terminology, basic properties of agent-based models, as well as…

Other Condensed Matter · Physics 2007-05-23 Armano Srbljinovic , Ognjen Skunca

Recent work in the field of multi-agent systems has sought to use techniques and concepts from the field of formal methods to provide rigorous theoretical analysis and guarantees on complex systems where multiple agents strategically…

Computer Science and Game Theory · Computer Science 2026-04-28 Senthil Rajasekaran , Moshe Y. Vardi

Following a long tradition of physicists who have noticed that the Ising model provides a general background to build realistic models of social interactions, we study a model of financial price dynamics resulting from the collective…

Statistical Mechanics · Physics 2008-12-02 Didier Sornette , Wei-Xing Zhou

Agents offer a new and exciting way of understanding the world of work. In this paper we describe the development of agent-based simulation models, designed to help to understand the relationship between people management practices and…

Multiagent Systems · Computer Science 2010-07-05 Peer-Olaf Siebers , Uwe Aickelin , Helen Celia , Chris Clegg

Electricity market modelling is often used by governments, industry and agencies to explore the development of scenarios over differing timeframes. For example, how would the reduction in cost of renewable energy impact investments in gas…

Multiagent Systems · Computer Science 2020-05-22 Alexander J. M. Kell , Matthew Forshaw , A. Stephen McGough

We study the qualitative and quantitative appearance of stylized facts in several agent-based computational economic market (ABCEM) models. We perform our simulations with the SABCEMM (Simulator for Agent-Based Computational Economic Market…

General Economics · Economics 2019-11-18 Maximilian Beikirch , Simon Cramer , Martin Frank , Philipp Otte , Emma Pabich , Torsten Trimborn

Starting from the observation of the real trading activity, we propose a model of a stockmarket simulating all the typical phases taking place in a stock exchange. We show that there is no need of several classes of agents once one has…

Condensed Matter · Physics 2009-10-31 Lorenzo Matassini , Fabio Franci

We propose a simple market model where agents trade different types of products with each other by using money, relying only on local information. Value fluctuations of single products, combined with the condition of maximum profit in…

Condensed Matter · Physics 2015-06-24 Raul Donangelo , Alex Hansen , Kim Sneppen , Sergio R. Souza
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