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Information dissemination in an experimentally based agent-based stock market

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  • Jakob Grazzini

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Abstract

This paper builds an agent-based model to reproduce the results of an experimental stock market that studies how the market aggregates private information. The aim is to use experiments and agent-based modeling to analyze the trading behavior in experimental stock markets. Using the experimental environment and results, it is possible to formulate a hypothesis about the subjects’ behavior and thereby formalize (algorithmically) the trading behavior in an agent-based model. This may lead to a better understanding of how the market converges to an equilibrium and of the mechanism that allows dissemination of private information in the market. Copyright Springer-Verlag Berlin Heidelberg 2013

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File URL: http://hdl.handle.net/10.1007/s11403-013-0109-x
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Bibliographic Info

Article provided by Springer in its journal Journal of Economic Interaction and Coordination.

Volume (Year): 8 (2013)
Issue (Month): 1 (April)
Pages: 179-209

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Handle: RePEc:spr:jeicoo:v:8:y:2013:i:1:p:179-209

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Web page: http://www.springer.com/economics/economic+theory/journal/11403

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Related research

Keywords: Agent-based modeling; Experiments; Stock market ; Asymmetric information; Learning;

References

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