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Industrial Dynamics and Financial Markets

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Author Info
Thomas Grebel ()
Esther Merey ()

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Abstract

Financial markets mirror the evolution of real economic industries as much as they influence them reciprocally. In this paper we show an approach how to connect both. We will focus on the impact of industrial dynamics on financial markets. Real economic sectors as well as financial markets will be modelled using agent-based modelling techniques. Boundedly rational agents build up the endogenous evolution of an entrepreneurially driven industry, thereby substantiating the role of knowledge diffusion. Boundedly rational investors in the financial market learn about new industries and trade the corresponding shares. The complete model will be set up as a modular system which will allow investigating various scenarios.

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Publisher Info
Article provided by Journal of Artificial Societies and Social Simulation in its journal Journal of Artificial Societies and Social Simulation.

Volume (Year): 12 (2009)
Issue (Month): ()
Pages:
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Handle: RePEc:jas:jasssj:2008-33-2

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Related research
Keywords: Industrial Dynamics; Neural Networks; Financial Markets; Entrepreneurship; Endogenous Evolution;

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This page was last updated on 2009-11-29.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.