| Article ID: | iaor2000402 |
| Country: | United States |
| Volume: | 75 |
| Issue: | 1/3 |
| Start Page Number: | 264 |
| End Page Number: | 274 |
| Publication Date: | Jan 1994 |
| Journal: | Physica D |
| Authors: | Arthur W. Brian, Palmer R.G., Holland J.H., Lebaron B., Tayler P. |
| Keywords: | economics |
We describe a model of a stockmarket in which independent adaptive agents can buy and sell stock on a central market. The overall market behavior, such as the stock price time series, is an emergent property of the agents' behavior. This approach to modelling a market is contrasted with conventional rational expectations approaches. Our model does not necessarily converge to an equilibrium, and can show bubbles, crashes, and continued high trading volume.