MS#125. Bubbles and Crashes: a Simulation Approach, 2008

In: Vela Velupillai Festschrift, to appear

Subjects: Economics, Agent-based modeling

Written: April 15, 2008

Abstract: In joint work since 2004 we have created a family of agent-based models for financial markets in which bubbles and crashes occur in imitation of real markets. The evolution of behavioral rules in these models has shed light on some possible mechanisms used by human account managers or traders. Our programming environment, NetLogo, has proved ideal for this work, and also offers a feature, HubNet, capable of extending simulations to include human as well as robot traders.

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