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In the present work we introduce a novel multi-agent model with the aim to reproduce the dynamics of a double auction market at microscopic time scale through a faithful simulation of the matching mechanics in the limit order book. The…

Trading and Market Microstructure · Quantitative Finance 2015-05-18 Marco Bartolozzi

Phenomena which involves collective choice of many agents who are interacting with each other and choosing one of several alternatives, based on the limited information available to them, frequently show switching between two distinct…

Physics and Society · Physics 2007-05-23 Sitabhra Sinha , S. Raghavendra

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

This paper studies repeated games where two players play multiple duopolistic games simultaneously (multimarket contact). A key assumption is that each player receives a noisy and private signal about the other's actions (private monitoring…

Computer Science and Game Theory · Computer Science 2019-11-26 Atsushi Iwasaki , Tadashi Sekiguchi , Shun Yamamoto , Makoto Yokoo

We present a quantitative theory, based on crowd effects, for the market volatility in a Minority Game played by a mixed population. Below a critical concentration of generalized strategy players, we find that the volatility in the crowded…

Condensed Matter · Physics 2009-10-31 P. Jefferies , M. Hart , N. F. Johnson , P. M. Hui

In this study, we developed a computational framework for simulating large-scale agent-based financial markets. Our platform supports trading multiple simultaneous assets and leverages distributed computing to scale the number and…

Trading and Market Microstructure · Quantitative Finance 2024-02-01 Aaron Wheeler , Jeffrey D. Varner

This paper presents an agent based model of an electronic market with two types of trading agents. One type follows a mean reverting strategy and the other, the speculative trader, tracks the maximum realised return over recent trades. The…

Trading and Market Microstructure · Quantitative Finance 2023-11-22 Nicolas Cofre , Magdalena Mosionek-Schweda

Traffic scenarios are inherently interactive. Multiple decision-makers predict the actions of others and choose strategies that maximize their rewards. We view these interactions from the perspective of game theory which introduces various…

Machine Learning · Computer Science 2020-04-28 Christian Muench , Frans A. Oliehoek , Dariu M. Gavrila

A generalized model of games is proposed, in which cooperative games and non-cooperative games are special cases. Some games that are neither cooperative nor non-cooperative can be expressed and analyzed. The model is based on relationships…

Computer Science and Game Theory · Computer Science 2016-10-10 Jiawei Li

A simple model for cooperation between "selfish" agents, which play an extended version of the Prisoner's Dilemma(PD) game, in which they use arbitrary payoffs, is presented and studied. A continuous variable, representing the probability…

Condensed Matter · Physics 2009-11-10 H. Fort

In this paper, we introduce a framework to study local interactions due to the presence of herding behavior in a minority game. The idea behind this approach is to consider that some of the agents who play the game believe that some of…

Computational Physics · Physics 2007-05-23 Daniel Oliveira Cajueiro , Reinaldo Soares De Camargo

Behavioral Finance has become a challenge to the scientific community. Based on the assumption that behavioral aspects of investors may explain some features of the Stock Market, we propose an agent based model to study quantitatively this…

General Finance · Quantitative Finance 2017-11-23 F. M. Stefan , A. P. F. Atman

We consider a dual model of decision making, in which an individual forms its opinion based on contrasting mechanisms of imitation and rational calculation. The decision making model (DMM) implements imitating behavior by means of a network…

Adaptation and Self-Organizing Systems · Physics 2015-06-22 Malgorzata Turalska , Bruce J. West

To study the interplay between global market choice and local peer pressure, we construct a minority-game-like econophysical model. In this so-called networked minority game model, every selfish player uses both the historical minority…

Statistical Mechanics · Physics 2015-06-24 H. F. Chau , F. K. Chow , K. H. Ho

A network model of manufacturing system is considered. This is a network formation game where players are participants of a production process and their actions are their's requests for interaction. Production networks are formed as a…

Optimization and Control · Mathematics 2018-03-05 O. A. Malafeyev , A. P. Parfenov

Enabling autonomous agents to act cooperatively is an important step to integrate artificial intelligence in our daily lives. While some methods seek to stimulate cooperation by letting agents give rewards to others, in this paper we…

Multiagent Systems · Computer Science 2023-01-19 Michael Kölle , Tim Matheis , Philipp Altmann , Kyrill Schmid

In this paper, we present a model of Partnership Game with respect to the important role of partnership and cooperation in nowdays life. Since such interactions are repeated frequently, we study this model as a Stage Game in the structure…

Dynamical Systems · Mathematics 2019-02-18 E. Sorouri , M. Eshaghi Gordji

The speculation game is an agent-based toy model to investigate the dynamics of the financial market. Our model has achieved the reproduction of 10 of the well-known stylized facts for financial time series. However, there is also a…

Statistical Finance · Quantitative Finance 2019-09-09 Kei Katahira , Yu Chen

We study a version of the minority game in which one agent is allowed to join the game in a random fashion. It is shown that in the crowded regime, i.e., for small values of the memory size $m$ of the agents in the population, the agent…

Statistical Mechanics · Physics 2009-11-10 K. F. Yip , T. S. Lo , P. M. Hui , N. F. Johnson

We propose an analytically tractable variation of the minority game in which rational agents use probabilistic strategies. In our model, $N$ agents choose between two alternatives repeatedly, and those who are in the minority get a pay-off…

Trading and Market Microstructure · Quantitative Finance 2014-02-11 V. Sasidevan , Deepak Dhar