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The paper proposes a computational adaptation of the principles underlying principal component analysis with agent based simulation in order to produce a novel modeling methodology for financial time series and financial markets. Goal of…

Trading and Market Microstructure · Quantitative Finance 2021-01-11 Filippo Neri

Economies and societal structures in general are complex stochastic systems which may not lend themselves well to algebraic analysis. An addition of subjective value criteria to the mechanics of interacting agents will further complicate…

General Finance · Quantitative Finance 2018-12-07 Dmitriy Volinskiy , Lana Cuthbertson , Omid Ardakanian

In real-world stock markets, certain chart patterns -- such as price declines near historical highs -- cannot be fully explained by fundamentals alone. These phenomena suggest the presence of path dependence in price formation, where…

Computational Engineering, Finance, and Science · Computer Science 2025-10-15 Ryuji Hashimoto , Takehiro Takayanagi , Masahiro Suzuki , Kiyoshi Izumi

Agentic systems, AI architectures that autonomously execute multi-step workflows to achieve complex goals, are often built using repeated large language model (LLM) calls for closed-set decision tasks such as routing, shortlisting, gating,…

Computation and Language · Computer Science 2026-02-19 Ido Levy , Eilam Shapira , Yinon Goldshtein , Avi Yaeli , Nir Mashkif , Segev Shlomov

The article is devoted to the issues of using discrete simulation models for modeling some basic technological processes. In the scientific work, models in the form of multi-agent systems have been investigated, which allow us to consider a…

Multiagent Systems · Computer Science 2021-09-28 Sergey Petrovich Bobkov , Irina Aleksandrovna Astrakhantseva

A numerical agent-based spin model of financial markets, based on the Potts model from statistical mechanics, with a novel interpretation of the spin variable (as regards financial-market models) is presented. In this model, a value of the…

Statistical Finance · Quantitative Finance 2021-04-28 Mateusz Denys

Agent-based modeling and network science have been used extensively to advance our understanding of emergent collective behavior in systems that are composed of a large number of simple interacting individuals or agents. With the increasing…

Multiagent Systems · Computer Science 2019-03-14 Marcos Cardinot , Colm O'Riordan , Josephine Griffith , Matjaž Perc

There is a growing demand for agentic AI technologies for a range of downstream applications like customer service and personal assistants. For applications where the agent needs to interact with a person, real-time low-latency…

Experiments in predator-prey systems show the emergence of long-term cycles. Deterministic model typically fails in capturing these behaviors, which emerge from the microscopic interplay of individual based dynamics and stochastic effects.…

Numerical Analysis · Mathematics 2022-03-03 Giacomo Albi , Roberto Chignola , Federica Ferrarese

We show that the introduction of Tobin taxes in agent-based models of currency markets can lead to a reduction of speculative trading and reduce the magnitude of exchange rate fluctuations at intermediate tax rates. In this regime revenues…

Disordered Systems and Neural Networks · Physics 2008-12-02 Ginestra Bianconi , Tobias Galla , Matteo Marsili

In this article we study the behavior of a group of economic agents in the context of cooperative game theory, interacting according to rules based on the Potts Model with suitable modifications. Each agent can be thought of as belonging to…

Computational Engineering, Finance, and Science · Computer Science 2007-05-23 Roberto da Silva , Alexandre Tavares Baraviera , Silvio R. Dahmen

Social scientists have used agent-based models to understand how individuals interact and behave in various political, ecological and economic scenarios. Agent-based models are ideal for understanding such models involving interacting…

Multiagent Systems · Computer Science 2014-08-18 Mariam Kiran

We review existing approaches to mathematical modeling and analysis of multi-agent systems in which complex collective behavior arises out of local interactions between many simple agents. Though the behavior of an individual agent can be…

Robotics · Computer Science 2007-05-23 Kristina Lerman , Aram Galstyan , Tad Hogg

As computational agents are developed for increasingly complicated e-commerce applications, the complexity of the decisions they face demands advances in artificial intelligence techniques. For example, an agent representing a seller in an…

Artificial Intelligence · Computer Science 2017-01-08 W. P. Birmingham , E. H. Durfee , S. Park

We introduce the simulation tool SABCEMM (Simulator for Agent-Based Computational Economic Market Models) for agent-based computational economic market (ABCEM) models. Our simulation tool is implemented in C++ and we can easily run ABCEM…

Computational Finance · Quantitative Finance 2018-10-11 Torsten Trimborn , Philipp Otte , Simon Cramer , Max Beikirch , Emma Pabich , Martin Frank

Bilateral markets, such as those for government bonds, involve decentralized and opaque transactions between market makers (MMs) and clients, posing significant challenges for traditional modeling approaches. To address these complexities,…

Trading and Market Microstructure · Quantitative Finance 2025-03-05 Alicia Vidler , Toby Walsh

Tokenization - the practice of converting strings of characters from an alphabet into sequences of tokens over a vocabulary - is a critical step in the NLP pipeline. The use of token representations is widely credited with increased model…

Computation and Language · Computer Science 2025-04-04 Juan Luis Gastaldi , John Terilla , Luca Malagutti , Brian DuSell , Tim Vieira , Ryan Cotterell

In multiagent systems autonomous agents interact with each other to achieve individual and collective goals. Typical interactions concern negotiation and agreement on resource exchanges. Modeling and formalizing these agreements pose…

Logic in Computer Science · Computer Science 2024-08-20 Lorenzo Ceragioli , Pierpaolo Degano , Letterio Galletta , Luca Viganò

Self-interested behavior in sharing economies often leads to inefficient aggregate outcomes compared to a centrally coordinated allocation, ultimately harming users. Yet, centralized coordination removes individual decision power. This…

Computer Science and Game Theory · Computer Science 2026-03-20 Leonardo Pedroso , Andrea Agazzi , W. P. M. H. Heemels , Mauro Salazar

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