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We review the recent approaches to modelling financial markets based on multi-agent systems. After a brief summary of the basic stylised facts observed in real-market time-series we discuss some simple agent-based systems which are…

Physics and Society · Physics 2008-12-02 Tobias Galla , Giancarlo Mosetti , Yi-Cheng Zhang

We argue that establishing the phase diagram of Agent Based Models (ABM) is a crucial first step, together with a qualitative understanding of how collective phenomena come about, before any calibration or more quantitative predictions are…

Theoretical Economics · Economics 2024-12-17 Jean-Philippe Bouchaud

Agent based modelling (ABM) is a computational approach to modelling complex systems by specifying the behaviour of autonomous decision-making components or agents in the system and allowing the system dynamics to emerge from their…

Artificial Intelligence · Computer Science 2023-05-22 Leo Ardon , Jared Vann , Deepeka Garg , Tom Spooner , Sumitra Ganesh

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

Agent-based modeling (ABM) is a well-established paradigm for simulating complex systems via interactions between constituent entities. Machine learning (ML) refers to approaches whereby statistical algorithms 'learn' from data on their…

Quantitative Methods · Quantitative Biology 2022-11-10 Nikita Sivakumar , Cameron Mura , Shayn M. Peirce

This paper offers a synthesis of the empirical literature on the effects of monetary policy. Using the findings from an extensive collection of meta-analyses, it evaluates the effectiveness of conventional and unconventional monetary policy…

Theoretical Economics · Economics 2025-09-25 Ricardo Alonzo Fernandez Salguero

Today's research in recommender systems is largely based on experimental designs that are static in a sense that they do not consider potential longitudinal effects of providing recommendations to users. In reality, however, various…

Information Retrieval · Computer Science 2021-08-26 Gediminas Adomavicius , Dietmar Jannach , Stephan Leitner , Jingjing Zhang

In this paper, we test predictions of a new theory of macroeconomics, called "thermal macroeconomics." The theory aims to apply the mathematical structure of classical thermodynamics, including analogues of temperature and entropy, to…

General Economics · Economics 2024-10-29 Yihang Luo , R. S. MacKay , Nick Chater

Most economic theories typically assume that financial market participants are fully rational individuals and use mathematical models to simulate human behavior in financial markets. However, human behavior is often not entirely rational…

Computation and Language · Computer Science 2024-07-01 Shen Gao , Yuntao Wen , Minghang Zhu , Jianing Wei , Yuhan Cheng , Qunzi Zhang , Shuo Shang

Reliable estimates of indirect economic losses arising from natural disasters are currently out of scientific reach. To address this problem, we propose a novel approach that combines a probabilistic physical damage catastrophe model with a…

Multi-agent simulations enables the modeling and analyses of the dynamic behaviors and interactions of autonomous entities evolving in complex environments. Agent-based models (ABM) are widely used to study emergent phenomena arising from…

Machine Learning · Computer Science 2025-05-20 Paul Saves , Nicolas Verstaevel , Benoît Gaudou

The increasing difficulties in financing the welfare state and in particular public retirement pensions have been one of the outcomes both of the decrease of fertility and birth rates combined with the increase of life expectancy. The…

General Economics · Economics 2019-09-20 Sérgio Bacelar , Luis Antunes

Economic inequality is one of the pivotal issues for most of economic and social policy makers across the world to insure the sustainable economic growth and justice. In the mainstream school of economics, namely neoclassical theories,…

Econometrics · Economics 2018-04-26 Hossein Sabzian , Alireza Aliahmadi , Adel Azar , Madjid Mirzaee

Systemic liquidity risk, defined by the IMF as "the risk of simultaneous liquidity difficulties at multiple financial institutions", is a key topic in macroprudential policy and financial stress analysis. Specialized models to simulate…

Risk Management · Quantitative Finance 2021-12-08 V. Macchiati , G. Brandi , G. Cimini , G. Caldarelli , D. Paolotti , T. Di Matteo

Algorithmic trading relies on machine learning models to make trading decisions. Despite strong in-sample performance, these models often degrade when confronted with evolving real-world market regimes, which can shift dramatically due to…

Machine Learning · Computer Science 2026-01-27 Haochong Xia , Simin Li , Ruixiao Xu , Zhixia Zhang , Hongxiang Wang , Zhiqian Liu , Teng Yao Long , Molei Qin , Chuqiao Zong , Bo An

Agent-based modelling (ABM) is a facet of wider Multi-Agent Systems (MAS) research that explores the collective behaviour of individual `agents', and the implications that their behaviour and interactions have for wider systemic behaviour.…

Multiagent Systems · Computer Science 2022-10-14 Nick Malleson , Mark Birkin , Daniel Birks , Jiaqi Ge , Alison Heppenstall , Ed Manley , Josie McCulloch , Patricia Ternes

This work outlines the modeling steps for developing a tool aimed at supporting policymakers in guiding policies toward more sustainable wheat production. In the agricultural sector,policies affect a highly diverse set of farms, which…

General Economics · Economics 2025-10-03 Gianfranco Giuloni , Edmondo Di Giuseppe , Arianna Di Paola

Deciphering travel behavior and mode choices is a critical aspect of effective urban transportation system management, particularly in developing countries where unique socio-economic and cultural conditions complicate decision-making.…

Multiagent Systems · Computer Science 2024-05-01 Kathleen Salazar-Serna , Lorena Cadavid , Carlos Franco

The deceleration of global poverty reduction in the last decades suggests that traditional redistribution policies are losing their effectiveness. Alternative ways to work towards the #1 United Nations Sustainable Development Goal (poverty…

Multiagent Systems · Computer Science 2024-02-12 Nieves Montes , Georgina Curto , Nardine Osman , Carles Sierra

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