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Related papers: Heterogeneous Agents in the Data Economy

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Inspired by the recent literature on aggregation theory, we aim at relating the long range correlation of the stocks return volatility to the heterogeneity of the investors' expectations about the level of the future volatility. Based on a…

Statistical Finance · Quantitative Finance 2008-12-02 Jerome Coulon , Yannick Malevergne

The rapid development of the mobile Internet and the Internet of Things is leading to a diversification of user devices and the emergence of new mobile applications on a regular basis. Such applications include those that are…

Computational Engineering, Finance, and Science · Computer Science 2024-08-13 Xirui Tang , Zeyu Wang , Xiaowei Cai , Honghua Su , Changsong Wei

The amount of digitally available but heterogeneous information about the world is remarkable, and new technologies such as self-driving cars, smart homes, or the internet of things may further increase it. In this paper we present…

Artificial Intelligence · Computer Science 2018-03-14 Philipp Geiger , Katja Hofmann , Bernhard Schölkopf

Cryptocurrency investment is inherently difficult due to its shorter history compared to traditional assets, the need to integrate vast amounts of data from various modalities, and the requirement for complex reasoning. While deep learning…

Trading and Market Microstructure · Quantitative Finance 2025-01-08 Yichen Luo , Yebo Feng , Jiahua Xu , Paolo Tasca , Yang Liu

Data heterogeneity across multiple sources is common in real-world machine learning (ML) settings. Although many methods focus on enabling a single model to handle diverse data, real-world markets often comprise multiple competing ML…

Computer Science and Game Theory · Computer Science 2025-05-13 Renzhe Xu , Kang Wang , Bo Li

Agents' heterogeneity is recognized as a driver mechanism for the persistence of financial volatility. We focus on the multiplicity of investment strategies' horizons, we embed this concept in a continuous time stochastic volatility…

Statistical Finance · Quantitative Finance 2013-04-04 Danilo Delpini , Giacomo Bormetti

We propose an agent-based network formation model under uncertainty with the objective of relaxing the common assumption of complete information, calling attention to the role beliefs may play in segregation. We demonstrate that our model…

Social and Information Networks · Computer Science 2021-05-12 D. Kai Zhang , Alexander Carver

There are clear benefits associated with a particular consumer choice for many current markets. For example, as we consider here, some products might carry environmental or `green' benefits. Some consumers might value these benefits while…

General Finance · Quantitative Finance 2008-12-02 Gérard Weisbuch , Vincent Buskens , Luat Vuong

An agent-based model for firms' dynamics is developed. The model consists of firm agents with identical characteristic parameters and a bank agent. Dynamics of those agents is described by their balance sheets. Each firm tries to maximize…

General Finance · Quantitative Finance 2009-01-14 Hiroshi Iyetomi , Hideaki Aoyama , Yoshi Fujiwara , Yuichi Ikeda , Wataru Souma

We model a dynamic data economy with fully endogenous growth where agents generate data from consumption and share them with innovation and production firms. Different from other productive factors such as labor or capital, data are…

Theoretical Economics · Economics 2021-09-22 Lin William Cong , Wenshi Wei , Danxia Xie , Longtian Zhang

Federated learning promises significant sample-efficiency gains by pooling data across multiple agents, yet incentive misalignment is an obstacle: each update is costly to the contributor but boosts every participant. We introduce a…

Computer Science and Game Theory · Computer Science 2026-02-02 Ariel D. Procaccia , Han Shao , Itai Shapira

Recent trends in Agent Computational Economics research, envelop a government agent in the model of the economy, whose decisions are based on learning algorithms. In this paper we try to evaluate the performance of simulated annealing in…

Optimization and Control · Mathematics 2009-06-26 Mattheos K. Protopapas , Elias B. Kosmatopoulos

This essay discusses the advantages of a probabilistic agent-based approach to questions in theoretical economics, from the nature of economic agents, to the nature of the equilibria supported by their interactions. One idea we propose is…

General Finance · Quantitative Finance 2013-11-05 Ted Theodosopoulos

We propose a novel approach to the problem of semantic heterogeneity where data are organized into a set of stratified and independent representation layers, namely: conceptual(where a set of unique alinguistic identifiers are connected…

Databases · Computer Science 2021-05-21 Fausto Giunchiglia , Alessio Zamboni , Mayukh Bagchi , Simone Bocca

We consider a heterogeneous agent-based economic model where economic agents have strictly bounded rationality and where income allocation strategies evolve through selective imitation. Income is calculated by a Cobb-Douglas type production…

Trading and Market Microstructure · Quantitative Finance 2010-09-15 Volker Nannen

I model the belief formation and decision making processes of economic agents during a monetary policy regime change (an acceleration in the money supply) with a deep reinforcement learning algorithm in the AI literature. I show that when…

Theoretical Economics · Economics 2022-10-25 Rui , Shi

The recent trend for acquiring big data assumes that possessing quantitatively more and qualitatively finer data necessarily provides an advantage that may be critical in competitive situations. Using a model complex adaptive system where…

Physics and Society · Physics 2018-08-15 V. Sasidevan , Appilineni Kushal , Sitabhra Sinha

We investigate the benefits of heterogeneity in multi-agent explore-exploit decision making where the goal of the agents is to maximize cumulative group reward. To do so we study a class of distributed stochastic bandit problems in which…

Optimization and Control · Mathematics 2020-12-03 Udari Madhushani , Naomi Leonard

Undesired bias afflicts both human and algorithmic decision making, and may be especially prevalent when information processing trade-offs incentivize the use of heuristics. One primary example is \textit{statistical discrimination} --…

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
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