This paper studies how software agents influence the market behavior of human traders. Software agents with a passive arbitrage seeking strategy are introduced in a double auction market experiment with human subjects in the laboratory. As a treatment variable, the influence of information on the existence of software agents is investigated. We found that common knowledge about the presence of ...

This paper studies how software agents influence the market behavior of human traders. Software agents with a passive arbitrage seeking strategy are introduced in a double auction market experiment with human subjects in the laboratory. As a treatment variable, the influence of information on the existence of software agents is investigated. We found that common knowledge about the presence of ...

In this paper we study dynamic pricing mechanisms of financial derivatives. A typical model of such pricing mechanism is the so-called g–expectation defined by solutions of a backward stochastic differential equation with g as its generating function. Black-Scholes pricing model is a special linear case of this pricing mechanism. We are mainly concerned with two types of pricing mechanisms in a...

Maize is the most important grain crop in South Africa, being both the major feed grain and the staple food for the majority of the South African population. Figure 1 illustrates that for the 2002/03 marketing year, maize was responsible for the largest contribution (13.78%) to the total gross value of the agricultural production with a gross value of R9.5 billion. Poultry slaughtered followed ...

Standard models in economics stress the role of intelligent agents who maximize utility. However, there may be situations where constraints imposed by market institutions dominate strategic agent behavior. We use data from the London Stock Exchange to test a simple model in which minimally intelligent agents place orders to trade at random. The model treats the statistical mechanics of order pl...

Organized trading for electricity includes both the pool and the futures market. Pool prices are volatile while the prices of the futures-market products are comparatively more stable. Thus, futures-market products constitute hedging instruments to reduce the risk suffered by any market agent. Electricity market agents engage in both pool and futures market transactions seeking to maximize thei...

With rising input costs, beef cattle producers are forced to make decisions based upon the return on investment. Chemical fertilizer application is a common used method by beef cattle producers in the southeastern United States to improve pasture yield and quality [1]. Application of 80 kg N/ha to smooth bromegrass pastures resulted in an increase of crude protein by two percentage points, and ...

Market Structure and the Demand for Free Trade ABSTRACT We explore the interplay of market structure and government trade policy in the context of a heterogenous goods duopoly model (allowing for goods to be substitutes or complements) wherein governments simultaneously and noncooperatively choose whether or not to provide subsidies for their firms and then firms noncooperatively choose output ...

Revenue management techniques, practiced for many years in the airline and hotel industries, have gained popularity with retailers. One such technique — dynamic pricing — refers to the intelligent process of controlling prices over a course of a sales season in a way that maximizes expected revenues. In this paper, we consider a retailer who sells a fashionable good during a short sales season,...