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This paper presents a realistic simulated stock market where large language models (LLMs) act as heterogeneous competing trading agents. The open-source framework incorporates a persistent order book with market and limit orders, partial…

Computational Finance · Quantitative Finance 2025-04-16 Alejandro Lopez-Lira

We consider a trading marketplace that is populated by traders with diverse trading strategies and objectives. The marketplace allows the suppliers to list their goods and facilitates matching between buyers and sellers. In return, such a…

Computer Science and Game Theory · Computer Science 2022-10-03 Kshama Dwarakanath , Svitlana S Vyetrenko , Tucker Balch

We present our Agent-Based Market Microstructure Simulation (ABMMS), an Agent-Based Financial Market (ABFM) that captures much of the complexity present in the US National Market System for equities (NMS). Agent-Based models are a natural…

Trading and Market Microstructure · Quantitative Finance 2023-11-28 Colin M. Van Oort , Ethan Ratliff-Crain , Brian F. Tivnan , Safwan Wshah

Cross-group externalities and network effects in two-sided platform markets shape market structure and competition policy, and are the subject of extensive study. Less understood are the within-group externalities that arise when the…

Theoretical Economics · Economics 2020-11-10 Quitzé Valenzuela-Stookey

This paper describes simulations and analysis of flash crash scenarios in an agent-based modelling framework. We design, implement, and assess a novel high-frequency agent-based financial market simulator that generates realistic…

Trading and Market Microstructure · Quantitative Finance 2024-04-23 Kang Gao , Perukrishnen Vytelingum , Stephen Weston , Wayne Luk , Ce Guo

Deep generative models are becoming increasingly used as tools for financial analysis. However, it is unclear how these models will influence financial markets, especially when they infer financial value in a semi-autonomous way. In this…

Machine Learning · Computer Science 2024-10-21 Namid R. Stillman , Rory Baggott

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 consider a financial market model which consists of a financial asset and a large number of interacting agents classified into many types. Different types of agents are heterogeneous in their price expectations. Each agent can change its…

Probability · Mathematics 2008-12-02 Biao Wu

The combination of the network theoretic approach with recently available abundant economic data leads to the development of novel analytic and computational tools for modelling and forecasting key economic indicators. The main idea is to…

General Finance · Quantitative Finance 2014-03-05 Andreas Joseph , Irena Vodenska , Eugene Stanley , Guanrong Chen

Recent technological developments have changed the fundamental ways stock markets function, bringing regulatory instances to assess the benefits of these developments. In parallel, the ongoing machine learning revolution and its multiple…

Trading and Market Microstructure · Quantitative Finance 2023-02-09 Johann Lussange , Boris Gutkin

The real world is awash with multi-agent problems that require collective action by self-interested agents, from the routing of packets across a computer network to the management of irrigation systems. Such systems have local incentives…

Multiagent Systems · Computer Science 2021-02-16 Michiel A. Bakker , Richard Everett , Laura Weidinger , Iason Gabriel , William S. Isaac , Joel Z. Leibo , Edward Hughes

As LLM agents advance, they are increasingly mediating economic decisions, ranging from product discovery to transactions, on behalf of users. Such applications promise benefits but also raise many questions about agent accountability and…

The online advertising market, with its thousands of auctions run per second, presents a daunting challenge for advertisers who wish to optimize their spend under a budget constraint. Thus, advertising platforms typically provide automated…

Machine Learning · Computer Science 2023-10-17 Dmytro Korenkevych , Frank Cheng , Artsiom Balakir , Alex Nikulkov , Lingnan Gao , Zhihao Cen , Zuobing Xu , Zheqing Zhu

Human societies engage in a number of games which use tokens as a means to allocate, issue and access gated resources and property rights: The notion of exchanging tokens that represent and carry value from the past into the future to…

Computer Science and Game Theory · Computer Science 2019-04-02 Viroshan Naicker

We propose and study the integration of sentiment analysis and deep reinforcement learning ensemble algorithms for stock trading by evaluating strategies capable of dynamically altering their active agent given the concurrent market…

Trading and Market Microstructure · Quantitative Finance 2024-11-21 Andrew Ye , James Xu , Vidyut Veedgav , Yi Wang , Yifan Yu , Daniel Yan , Ryan Chen , Vipin Chaudhary , Shuai Xu

We present an agent behavior based microscopic model for diffusion price processes. As such we provide a model not only containing a convenient framework for describing socio-economic behavior, but also a sophisticated link to price…

Probability · Mathematics 2016-06-28 Christof Henkel

We study decentralized markets with the presence of middlemen, modeled by a non-cooperative bargaining game in trading networks. Our goal is to investigate how the network structure of the market and the role of middlemen influence the…

Computer Science and Game Theory · Computer Science 2013-07-09 Thanh Nguyen , Vijay G. Subramanian , Randall A. Berry

Modern information access ecosystems consist of mixtures of systems, such as retrieval systems and large language models, and increasingly rely on marketplaces to mediate access to models, tools, and data, making competition between systems…

Information Retrieval · Computer Science 2026-04-17 To Eun Kim , Alireza Salemi , Hamed Zamani , Fernando Diaz

Order book imbalance (OBI) - buy orders minus sell orders near the best quote - measures supply-demand imbalance that can move prices. OBI is positively correlated with returns, and some investors try to use it to improve performance. Large…

Computational Finance · Quantitative Finance 2025-09-23 Shuto Endo , Takanobu Mizuta , Isao Yagi

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