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Large Language Models (LLMs) open new possibilities for constructing realistic and interpretable macroeconomic simulations. We present SimCity, a multi-agent framework that leverages LLMs to model an interpretable macroeconomic system with…

Multiagent Systems · Computer Science 2026-04-06 Yeqi Feng , Yucheng Lu , Hongyu Su , Yixin Tao , Tianxing He

We describe a new model to simulate the dynamic interactions between market price and the decisions of two different kind of traders. They possess spatial mobility allowing to group together to form coalitions. Each coalition follows a…

Statistical Mechanics · Physics 2009-10-31 Filippo Castiglione

Large language models (LLMs) fine-tuned on multimodal financial data have demonstrated impressive reasoning capabilities in various financial tasks. However, they often struggle with multi-step, goal-oriented scenarios in interactive…

This paper proposes a methodology to empirically validate an agent-based model (ABM) that generates artificial financial time series data comparable with real-world financial data. The approach is based on comparing the results of the ABM…

Computational Finance · Quantitative Finance 2022-06-22 Luis Goncalves de Faria

Large Language Models (LLMs), prominently highlighted by the recent evolution in the Generative Pre-trained Transformers (GPT) series, have displayed significant prowess across various domains, such as aiding in healthcare diagnostics and…

Portfolio Management · Quantitative Finance 2023-09-08 Yang Li , Yangyang Yu , Haohang Li , Zhi Chen , Khaldoun Khashanah

Generative models aim to simulate realistic effects of various actions across different contexts, from text generation to visual effects. Despite significant efforts to build real-world simulators, the application of generative models to…

Computational Finance · Quantitative Finance 2025-03-14 Junjie Li , Yang Liu , Weiqing Liu , Shikai Fang , Lewen Wang , Chang Xu , Jiang Bian

Large language models (LLMs) show promise for natural language tasks but struggle when applied directly to complex domains like finance. LLMs have difficulty reasoning about and integrating all relevant information. We propose a…

Computation and Language · Computer Science 2023-11-15 Zhixuan Chu , Huaiyu Guo , Xinyuan Zhou , Yijia Wang , Fei Yu , Hong Chen , Wanqing Xu , Xin Lu , Qing Cui , Longfei Li , Jun Zhou , Sheng Li

This paper presents PolySwarm, a novel multi-agent large language model (LLM) framework designed for real-time prediction market trading and latency arbitrage on decentralized platforms such as Polymarket. PolySwarm deploys a swarm of 50…

Artificial Intelligence · Computer Science 2026-04-07 Rajat M. Barot , Arjun S. Borkhatariya

A wide range of real-world applications is characterized by their symbolic nature, necessitating a strong capability for symbolic reasoning. This paper investigates the potential application of Large Language Models (LLMs) as symbolic…

Computation and Language · Computer Science 2024-01-18 Meng Fang , Shilong Deng , Yudi Zhang , Zijing Shi , Ling Chen , Mykola Pechenizkiy , Jun Wang

Large language models (LLMs) achieve strong performance across benchmarks--from knowledge quizzes and math reasoning to web-agent tasks--but these tests occur in static settings, lacking real dynamics and uncertainty. Consequently, they…

Trading and Market Microstructure · Quantitative Finance 2025-11-06 Haofei Yu , Fenghai Li , Jiaxuan You

In the present paper a model of a market consisting of real and financial interacting sectors is studied. Agents populating the stock market are assumed to be not able to observe the true underlying fundamental, and their beliefs are biased…

General Finance · Quantitative Finance 2018-06-13 Fausto Cavalli , Ahmad Naimzada , Nicolò Pecora , Marina Pireddu

This research investigates liquidity dynamics in fractional ownership markets, focusing on illiquid alternative investments traded on a FinTech platform. By leveraging empirical data and employing agent-based modeling (ABM), the study…

Trading and Market Microstructure · Quantitative Finance 2024-12-05 Lars Fluri , A. Ege Yilmaz , Denis Bieri , Thomas Ankenbrand , Aurelio Perucca

Quantitative finance has had a long tradition of a bottom-up approach to complex systems inference via multi-agent systems (MAS). These statistical tools are based on modelling agents trading via a centralised order book, in order to…

Trading and Market Microstructure · Quantitative Finance 2019-10-18 J. Lussange , I. Lazarevich , S. Bourgeois-Gironde , S. Palminteri , B. Gutkin

Financial trading is a crucial component of the markets, informed by a multimodal information landscape encompassing news, prices, and Kline charts, and encompasses diverse tasks such as quantitative trading and high-frequency trading with…

Trading and Market Microstructure · Quantitative Finance 2024-07-01 Wentao Zhang , Lingxuan Zhao , Haochong Xia , Shuo Sun , Jiaze Sun , Molei Qin , Xinyi Li , Yuqing Zhao , Yilei Zhao , Xinyu Cai , Longtao Zheng , Xinrun Wang , Bo An

This review deals with several microscopic (``agent-based'') models of financial markets which have been studied by economists and physicists over the last decade: Kim-Markowitz, Levy-Levy-Solomon, Cont-Bouchaud, Solomon-Weisbuch,…

Physics and Society · Physics 2009-11-13 E. Samanidou , E. Zschischang , D. Stauffer , T. Lux

In this paper, we describe a novel agent-based approach for modelling the transaction cost of buying or selling an asset in financial markets, e.g., to liquidate a large position as a result of a margin call to meet financial obligations.…

Trading and Market Microstructure · Quantitative Finance 2025-05-22 Perukrishnen Vytelingum , Rory Baggott , Namid Stillman , Jianfei Zhang , Dingqiu Zhu , Tao Chen , Justin Lyon

Large Language Model (LLM) agents have been increasingly adopted as simulation tools to model humans in social science and role-playing applications. However, one fundamental question remains: can LLM agents really simulate human behavior?…

Artificial Intelligence · Computer Science 2024-11-04 Chengxing Xie , Canyu Chen , Feiran Jia , Ziyu Ye , Shiyang Lai , Kai Shu , Jindong Gu , Adel Bibi , Ziniu Hu , David Jurgens , James Evans , Philip Torr , Bernard Ghanem , Guohao Li

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…

The exceptional potential of large language models (LLMs) in handling text information has garnered significant attention in the field of financial trading. However, most existing trading agents operate under intraday, independent…

Multiagent Systems · Computer Science 2026-01-08 Bijia Liu , Ronghao Dang

The advent of large language models has ushered in a new era of agentic systems, where artificial intelligence programs exhibit remarkable autonomous decision-making capabilities across diverse domains. This paper explores agentic system…

Artificial Intelligence · Computer Science 2025-05-01 Izunna Okpala , Ashkan Golgoon , Arjun Ravi Kannan
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