Exogenous Information and Endogenous Market Behavior with Artificial Learning Traders

Contents

The relationship between macro behavior of the market and micro behavior of traders is very complex. Especially, the relationship between the information and interpretation of traders has not been studied yet. In this paper, we model the artificial market and adaptive trader agents with the abstract information, and clarify the emergent process of micro-macro behavior with traders’ learning mechanism of the information. The learning and interpretation of trader is modeled by the translation from the information to the internal and external signals, which are used for trader as input signals to make a decision. Through several computer experiments based on such agent-based simulation, we confirm the micro-macro behavior between the artificial market and learning trader agents. In addition, to implement the simulation system, we used X-Economy system, which is a platform system for multi-agent Economics supplied in X-Economy project.