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We consider a class of generalized capital asset pricing models in continuous time with a finite number of agents and tradable securities. The securities may not be sufficient to span all sources of uncertainty. If the agents have…

General Finance · Quantitative Finance 2012-10-23 Ulrich Horst , Michael Kupper , Andrea Macrina , Christoph Mainberger

This paper considers the problem of steering the aggregative behavior of a population of noncooperative price-taking agents towards a desired behavior. Different from conventional pricing schemes where the price is fully available for…

Optimization and Control · Mathematics 2022-01-20 Mehran Shakarami , Ashish Cherukuri , Nima Monshizadeh

Taking agent-based models (ABM) closer to the data is an open challenge. This paper explicitly tackles parameter space exploration and calibration of ABMs combining supervised machine-learning and intelligent sampling to build a surrogate…

Economics · Quantitative Finance 2017-04-07 Francesco Lamperti , Andrea Roventini , Amir Sani

A class of heterogeneous agent models is investigated where investors switch trading position whenever their motivation to do so exceeds some critical threshold. These motivations can be psychological in nature or reflect behaviour…

Computational Physics · Physics 2009-11-13 R. Cross , M. Grinfeld , H. Lamba , T. Seaman

We present a simple agent-based model to study the development of a bubble and the consequential crash and investigate how their proximate triggering factor might relate to their fundamental mechanism, and vice versa. Our agents invest…

Trading and Market Microstructure · Quantitative Finance 2010-11-12 Georges Harras , Didier Sornette

Bet-hedging is a phenotype diversification strategy that combines a fast-growing vulnerable phenotype with a slow-growing resistant phenotype. In environments switching between favorable and unfavorable conditions, bet-hedging optimizes…

Populations and Evolution · Quantitative Biology 2024-06-18 Manuel Dávila-Romero , Francisco J. Cao-García , Luis Dinis

The importance of considering the volumes to analyze stock prices movements can be considered as a well-accepted practice in the financial area. However, when we look at the scientific production in this field, we still cannot find a…

Statistical Finance · Quantitative Finance 2021-08-31 Tiago Colliri , Fernando F. Ferreira

We are looking for the agent-based treatment of the financial markets considering necessity to build bridges between microscopic, agent based, and macroscopic, phenomenological modeling. The acknowledgment that agent-based modeling…

Statistical Finance · Quantitative Finance 2019-01-01 V. Gontis , A. Kononovicius

We study a dynamic asset pricing problem in which a representative agent is ambiguous about the aggregate endowment growth rate and trades a risky stock, human capital, and a risk-free asset to maximize her preference value of consumption…

Pricing of Securities · Quantitative Finance 2025-12-04 Jiacheng Fan , Xue Dong He , Ruocheng Wu

We discuss a method for predicting financial movements and finding pockets of predictability in the price-series, which is built around inferring the heterogeneity of trading strategies in a multi-agent trader population. This work explores…

Computational Engineering, Finance, and Science · Computer Science 2015-05-13 Nachi Gupta , Raphael Hauser , Neil F. Johnson

Industrial symbiosis fosters circularity by enabling firms to repurpose residual resources, yet its emergence is constrained by socio-spatial frictions that shape costs, matching opportunities, and market efficiency. Existing models often…

Computer Science and Game Theory · Computer Science 2026-02-17 Matthieu Mastio , Paul Saves , Benoit Gaudou , Nicolas Verstaevel

This study presents an agent-based computational cross-market model for Chinese equity market structure, which includes both stocks and CSI 300 index futures. In this model, we design several stocks and one index futures to simulate this…

Trading and Market Microstructure · Quantitative Finance 2014-04-17 Hai-Chuan Xu , Wei Zhang , Xiong Xiong , Wei-Xing Zhou

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

This paper is devoted to a study of robust fundamental theorems of asset pricing in discrete time and finite horizon settings. Uncertainty is modelled by a (possibly uncountable) family of price processes on the same probability space. Our…

Mathematical Finance · Quantitative Finance 2024-04-04 Huy N. Chau

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

Agent-Based Models (ABM) are computational scenario-generators, which can be used to predict the possible future outcomes of the complex system they represent. To better understand the robustness of these predictions, it is necessary to…

General Economics · Economics 2022-08-08 Karl Naumann-Woleske , Max Sina Knicker , Michael Benzaquen , Jean-Philippe Bouchaud

We present a novel agent-based approach to simulating an over-the-counter (OTC) financial market in which trades are intermediated solely by market makers and agent visibility is constrained to a network topology. Dynamics, such as changes…

Econometrics · Economics 2024-05-07 James T. Wilkinson , Jacob Kelter , John Chen , Uri Wilensky

An efficient, reliable, and interpretable global solution method, the Deep learning-based algorithm for Heterogeneous Agent Models (DeepHAM), is proposed for solving high dimensional heterogeneous agent models with aggregate shocks. The…

General Economics · Economics 2022-02-22 Jiequn Han , Yucheng Yang , Weinan E

In this paper, we propose a new procedure for unconditional and conditional forecasting in agent-based models. The proposed algorithm is based on the application of amortized neural networks and consists of two steps. The first step…

Econometrics · Economics 2023-08-14 Denis Koshelev , Alexey Ponomarenko , Sergei Seleznev

The agent-based model of stock price dynamics on a directed evolving complex network is suggested and studied by direct simulation. The stationary regime is maintained as a result of the balance between the extremal dynamics, adaptivity of…

Physics and Society · Physics 2009-11-13 D. Horvath , Z. Kuscsik