Artificial Financial Markets: Historical and Interdisciplinary Perspective
نویسندگان
چکیده
This paper aims to present the architecture of an artificial stock market that considers the microstructure of existing markets and understanding the complex patterns and phenomena that are observed in economic systems. In agent-based financial market models, prices can be endogenously formed by the system itself as the result of interaction of market participants. We identify and describe the tasks and choices that different traders face based on their role in the market by tracing orders. We review the literature on these models and analyze their strengths, weaknesses, opportunities, and threats with special focus on traders. We conclude with seven recommendations to help guide the development of artificial markets as a venue for technological innovation research.
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