2 research outputs found
On the Design of Artificial Stock Markets
Artificial stock markets are designed with the aim to study and understand market dynamics
by representing (part of) real stock markets. Since there is a large variety of real
stock markets with several partially observable elements and hidden processes, artificial
markets differ regarding their structure and implementation. In this paper we analyze to
what degree current artificial stock markets reflect the workings of real stock markets. In
order to conduct this analysis we set up a list of factors which influence market dynamics
and are as a consequence important to consider for designing market models. We differentiate
two categories of factors: general, well-defined aspects that characterize the organization
of a market and hidden aspects that characterize the functioning of the markets and the
behaviour of the traders