Article ID Journal Published Year Pages File Type
976049 Physica A: Statistical Mechanics and its Applications 2010 11 Pages PDF
Abstract

If stock markets are complex, monetary policy and even financial regulation may be useless to prevent bubbles and crashes. Here, we suggest the use of robot traders as an anti-bubble decoy. To make our case, we put forward a new stochastic cellular automata model that generates an emergent stock price dynamics as a result of the interaction between traders. After introducing socially integrated robot traders, the stock price dynamics can be controlled, so as to make the market more Gaussian.

Related Topics
Physical Sciences and Engineering Mathematics Mathematical Physics
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