Abstract:
Artificial Economic Life: A Simple Model of a Stockmarket
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R.G. Palmer, W. Brian Arthur, John H. Holland,
Blake LeBaron,
and Paul Taylor
We describe a model of a stockmarket in which independent
adaptive agents can buy and sell stock on a central market.
The overall market behavior, such as the stock price time series,
is an emergent property of the agents' behavior.
This approach to modelling a market is contrasted with
conventional rational expectations approaches.
Our model does not necessarily converge to an equilibrium, and
can show bubbles, crashes, and continued high trading volume.
Appeared: Physica D 75, 264-274 (1994)
Last Updated: 17-Dec-98