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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

In this study, we developed a computational framework for simulating large-scale agent-based financial markets. Our platform supports trading multiple simultaneous assets and leverages distributed computing to scale the number and…

Trading and Market Microstructure · Quantitative Finance 2024-02-01 Aaron Wheeler , Jeffrey D. Varner

We consider the problem of optimal trading for a power producer in the context of intraday electricity markets. The aim is to minimize the imbalance cost induced by the random residual demand in electricity, i.e. the consumption from the…

Trading and Market Microstructure · Quantitative Finance 2018-11-27 René Aïd , Pierre Gruet , Huyên Pham

In this work we investigate the inefficiency of the electricity system with strategic agents. Specifically, we prove that without a proper control the total demand of an inefficient system is at most twice the total demand of the optimal…

Computer Science and Game Theory · Computer Science 2015-09-10 Carlos Barreto , Eduardo Mojica-Nava , Nicanor Quijano

Simulated environments are increasingly used by trading firms and investment banks to evaluate trading strategies before approaching real markets. Backtesting, a widely used approach, consists of simulating experimental strategies while…

Artificial Intelligence · Computer Science 2021-10-27 Andrea Coletta , Matteo Prata , Michele Conti , Emanuele Mercanti , Novella Bartolini , Aymeric Moulin , Svitlana Vyetrenko , Tucker Balch

Power system simulations that extend over a time period of minutes, hours, or even longer are called extended-term simulations. As power systems evolve into complex systems with increasing interdependencies and richer dynamic behaviors…

Computational Engineering, Finance, and Science · Computer Science 2021-04-08 Rui Yao , Feng Qiu

The over-the-counter (OTC) government bond markets are characterised by their bilateral trading structures, which pose unique challenges to understanding and ensuring market stability and liquidity. In this paper, we develop a bespoke ABM…

Trading and Market Microstructure · Quantitative Finance 2025-01-29 Alicia Vidler , Toby Walsh

Over the past few years, the futures market has been successfully developing in the North-West region. Futures markets are one of the most effective and liquid-visible trading mechanisms. A large number of buyers are forced to compete with…

Mathematical Finance · Quantitative Finance 2018-08-16 Oleg Malafeyev , Shulga Andrey

A hybrid simulation-based framework involving system dynamics and agent-based simulation is proposed to address duopoly game considering multiple strategic decision variables and rich payoff, which cannot be addressed by traditional…

Computer Science and Game Theory · Computer Science 2020-09-22 Dong Xu , Chao Meng , Qingpeng Zhang , Puneet Bhardwaj , Young-Jun Son

We propose a framework where generation and transmission capacities are planned concurrently in market environments with a focus on the prosumers. This paper is a continuation of Part I and presents numerical results from three archetypal…

Optimization and Control · Mathematics 2021-05-24 Ni Wang , Remco Verzijlbergh , Petra Heijnen , Paulien Herder

We propose a heterogeneous agent market model (HAM) in continuous time. The market is populated by fundamental traders and chartists, who both use simple linear trading rules. Most of the related literature explores stability, price…

General Economics · Economics 2019-02-27 Zsolt Bihary , Attila András Víg

With the increasing complexity of collaboration among various social entities and user demands, the factors affecting the stable development of the data service market are also growing. These factors include the widespread dissemination of…

Multiagent Systems · Computer Science 2026-05-28 Deyu Zhou , Yuwei Guo , Xudong Lu , Linhao Zhang , Wei Guo , Lizhen Cui

The electricity consumption behavior in Brazil has been extensively investigated over the years due to financial and social problems. In this context, it is important to simulate the energy prices of the energy efficiency auctions in the…

This paper explores the utility of agent-based simulations in realistically modelling market structures and sheds light on the nuances of optimal dealer strategies. It underscores the contrast between conclusions drawn from probabilistic…

Trading and Market Microstructure · Quantitative Finance 2023-12-12 Wladimir Ostrovsky

Statistical mechanics provides a useful analog for understanding the behavior of complex adaptive systems, including power markets and the power systems they intend to govern. Transaction-based control is founded on the conjecture that the…

Adaptation and Self-Organizing Systems · Physics 2007-05-23 David P. Chassin

Machine learning (especially reinforcement learning) methods for trading are increasingly reliant on simulation for agent training and testing. Furthermore, simulation is important for validation of hand-coded trading strategies and for…

Trading and Market Microstructure · Quantitative Finance 2019-12-12 Svitlana Vyetrenko , David Byrd , Nick Petosa , Mahmoud Mahfouz , Danial Dervovic , Manuela Veloso , Tucker Hybinette Balch

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

With the increasing scale of search engine marketing, designing an efficient bidding system is becoming paramount for the success of e-commerce companies. The critical challenges faced by a modern industrial-level bidding system include: 1.…

Computation and Language · Computer Science 2021-08-09 Cheng Jie , Da Xu , Zigeng Wang , Lu Wang , Wei Shen

Bilevel programming can be used to formulate many problems in the field of power systems, such as strategic bidding. However, common reformulations of bilevel problems to mixed-integer linear programs make solving such problems hard, which…

Optimization and Control · Mathematics 2022-07-11 Eléa Prat , Spyros Chatzivasileiadis

There is a growing interest in the integration of energy infrastructures to increase systems' flexibility and reduce operational costs. The most studied case is the synergy between electric and heating networks. Even though integrated heat…

General Economics · Economics 2020-11-23 Alvaro Gonzalez-Castellanos , David Pozo , Aldo Bischi
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