Related papers: Dissecting AI Trading: Behavioral Finance and Mark…

This paper explores how Large Language Models (LLMs) behave in a classic experimental finance paradigm widely known for eliciting bubbles and crashes in human participants. We adapt an established trading design, where traders buy and sell…

As Large Language Models (LLMs) become increasingly integrated into financial systems, understanding their behavioural properties is crucial. Do LLMs conform to the rational expectations paradigm, do they exhibit human-like "animal…

We describe a simple model for speculative trading based on adaptive behavior of economic agents.The adaptive behavior is expressed through a feedback mechanism for changing agents' stock-to-bond ratios, depending on the past performance of…

Understanding decision-making in multi-AI-agent frameworks is crucial for analyzing strategic interactions in network-effect-driven contexts. This study investigates how AI agents navigate network-effect games, where individual payoffs…

We explore the potential of Large Language Models (LLMs) to replicate human behavior in economic market experiments. Compared to previous studies, we focus on dynamic feedback between LLM agents: the decisions of each LLM impact the market…

We conduct experiments with algorithmic pricing agents based on Large Language Models (LLMs). In oligopoly settings, LLM-based pricing agents quickly and autonomously reach supracompetitive prices and profits. Variation in seemingly…

This paper presents a realistic simulated stock market where large language models (LLMs) act as heterogeneous competing trading agents. The open-source framework incorporates a persistent order book with market and limit orders, partial…

Do generative AI models, particularly large language models (LLMs), exhibit systematic behavioral biases in economic and financial decisions? If so, how can these biases be mitigated? Drawing on the cognitive psychology and experimental…

This paper presents positive initial evidence that generative agents can relax the rigidity of traditional mathematical models for human decision-making in power dispatch and auction settings. We design two proof-of-concept energy…

Pertaining to Agent-based Computational Economics (ACE), this work presents two models for the rise and downfall of speculative bubbles through an exchange price fixing based on double auction mechanisms. The first model is based on a…

Can Large Language Models (AI agents) aggregate dispersed private information through trading and reason about the knowledge of others by observing price movements? We conduct a controlled experiment where AI agents trade in a prediction…

AI agents negotiate and transact in natural language with unfamiliar counterparts: a buyer bot facing an unknown seller, or a procurement assistant negotiating with a supplier. In such interactions, the counterpart's LLM, prompts, control…

We investigate auction mechanisms for AI-generated content, focusing on applications like ad creative generation. In our model, agents' preferences over stochastically generated content are encoded as large language models (LLMs). We…

Recent advances in large language models, tool-using agents, and financial machine learning are shifting financial automation from isolated prediction tasks to integrated decision systems that can perceive information, reason over…

Markets increasingly accommodate large language models (LLMs) as autonomous decision-making agents. As this transition occurs, it becomes critical to evaluate how these agents behave relative to their human and task-specific statistical…

Recent advances in large language models (LLMs) have enabled the development of AI agents that exhibit increasingly human-like behaviors, including planning, adaptation, and social dynamics across diverse, interactive, and open-ended…

Large Language Models (LLMs) have demonstrated their capabilities across various tasks, from language translation to complex reasoning. Understanding and predicting human behavior and biases are crucial for artificial intelligence (AI)…

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…

We introduce a novel hybrid approach that augments Agent-Based Models (ABMs) with behaviors generated by Large Language Models (LLMs) to simulate human trading interactions. We call our model TraderTalk. Leveraging LLMs trained on extensive…

As artificial intelligence (AI) enters the agentic era, large language models (LLMs) are increasingly deployed as autonomous agents that interact with one another rather than operate in isolation. This shift raises a fundamental question:…