Traders imprint themselves by adaptively updating their own avatar

Details Traders imprint themselves by adaptively updating their own avatar Traders imprint themselves by adaptively updating their own avatar

2005-09-06

arxiv.org/abs/cs/0509017v1

Computer Science

Multiagent Systems

12 pages, 4 figures, draft of a paper submitted to Artificial Economics 2005, September 15-16, Lille, France

Scientific paper

Simulations of artificial stock markets were considered as early as 1964 and multi-agent ones were introduced as early as 1989. Starting the early 90's, collaborations of economists and physicists produced increasingly realistic simulation platforms. Currently, the market stylized facts are easily reproduced and one has now to address the realistic details of the Market Microstructure and of the Traders Behaviour. This calls for new methods and tools capable of bridging smoothly between simulations and experiments in economics. We propose here the following Avatar-Based Method (ABM). The subjects implement and maintain their Avatars (programs encoding their personal decision making procedures) on NatLab, a market simulation platform. Once these procedures are fed in a computer edible format, they can be operationally used as such without the need for belabouring, interpreting or conceptualising them. Thus ABM short-circuits the usual behavioural economics experiments that search for the psychological mechanisms underlying the subjects behaviour. Finally, ABM maintains a level of objectivity close to the classical behaviourism while extending its scope to subjects' decision making mechanisms. We report on experiments where Avatars designed and maintained by humans from different backgrounds (including real traders) compete in a continuous double-auction market. We hope this unbiased way of capturing the adaptive evolution of real subjects behaviour may lead to a new kind of behavioural economics experiments with a high degree of reliability, analysability and reproducibility.

Affiliated with

Also associated with

No associations

Rating

Traders imprint themselves by adaptively updating their own avatar does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.

If you have personal experience with Traders imprint themselves by adaptively updating their own avatar, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Traders imprint themselves by adaptively updating their own avatar will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFWR-SCP-O-375303