Related papers: Bounded Rationality in Central Bank Communication
Gaps arise between a language model's use of concepts and people's expectations. This gap is critical when LLMs generate text to help people communicate via Augmentative and Alternative Communication (AAC) tools. In this work, we introduce…
Research in emotion analysis is scattered across different label formats (e.g., polarity types, basic emotion categories, and affective dimensions), linguistic levels (word vs. sentence vs. discourse), and, of course, (few well-resourced…
We consider the problem of estimation from survey data gathered from strategic and boundedly-rational agents with heterogeneous objectives and available information. Particularly, we consider a setting where there are three different types…
We introduce and treat rigorously a new multi-agent model of the continuous double auction or in other words the order book (OB). It is designed to explain collective behaviour of the market when new information affecting the market…
Temporal data distribution shift is prevalent in the financial text. How can a financial sentiment analysis system be trained in a volatile market environment that can accurately infer sentiment and be robust to temporal data distribution…
The impact of trades on asset prices is a crucial aspect of market dynamics for academics, regulators and practitioners alike. Recently, universal and highly nonlinear master curves were observed for price impacts aggregated on all…
There are non-vanishing price responses across different stocks in correlated financial markets. We further study this issue by performing different averages, which identify active and passive cross-responses. The two average…
The paper focuses on the link between information, investors' expectations and market price movement. EUR/USD market is examined from communication-theoretical perspective on the dynamics of information and meaning. We build upon the…
Emotional tone is pervasive in human communication, yet its influence on large language model (LLM) behaviour remains unclear. Here, we examine how first-person emotional framing in user-side queries affect LLM performance across six…
Common knowledge/belief in rationality is the traditional standard assumption in analysing interaction among agents. This paper proposes a graph-based language for capturing significantly more complicated structures of higher-order beliefs…
Sentic computing relies on well-defined affective models of different complexity - polarity to distinguish positive and negative sentiment, for example, or more nuanced models to capture expressions of human emotions. When used to measure…
Existing financial NLP benchmarks often rely on labels supplied by outside observers, measuring how language is perceived rather than what speakers have committed to in the market. We introduce StakeBench, an evaluation framework for…
Which level of inflation should Central Banks be targeting? We investigate this issue in the context of a simplified Agent Based Model of the economy. Depending on the value of the parameters that describe the behaviour of agents (in…
The economic shocks that followed the COVID-19 pandemic have brought to light the difficulty, both for academics and policy makers, of describing and predicting the dynamics of inflation. This paper offers an alternative modelling approach.…
In models of opinion dynamics, agents interact with each other and can change their opinions as a result of those interactions. One type of opinion model is a bounded-confidence model (BCM), in which opinions take continuous values and…
While sentiment analysis is the staple of financial NLP, capturing the nuances of 'why' behind that sentiment remains a challenge. There have been attempts to address this by analysing investor emotions alongside sentiment; however, this…
I present evidence that communication between marketplace participants is an important influence on market demand. I find that consumer demand is approximately equally influenced by communication on both formal and informal networks-…
We developed a coupled social-climate network model to understand the interaction between climate change opinion spread and the climate system and determine the role of this interaction in shaping collective actions and global temperature…
Emotions that somebody develops based on an argument do not only depend on the argument itself - they are also influenced by a subjective evaluation of the argument's potential impact on the self. For instance, an argument to ban plastic…
A multi-level model of opinion formation is presented which takes into account that attitudes on different issues are usually not independent. In the model, agents exchange beliefs regarding a series of facts. A cognitive structure of…