MS#125. Bubbles and Crashes: a Cyborg Approach, 2008
- In: Computable, Constructive and Behavioural Economic Dynamics,
Vela Velupillai Festschrift, Stefano Zambelli ed., New York: Routledge, 2010; pp. 416-431.
- Subjects: Economics, Agent-based modeling
- Written: April 15, 2008
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.
7 pages, 124 KB
by Ralph Abraham