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The agent-based double auction markets: 15 Years On

The agent-based double auction markets: 15 Years On
The agent-based double auction markets: 15 Years On
Novelties discovering as a source of constant change is the essence of economics. However, most economic models do not have the kind of novelties-discovering agents required for constant changes. This silence was broken by Andrews and Prager 15 years ago when they placed GP (genetic programming)-driven agents in the double auction market. The work was, however, neither economically well interpreted nor complete; hence the silence remains in economics. In this article, we revisit their model and systematically conduct a series of simulations to better document the results. Our simulations show that human-written programs, including some reputable ones, are eventually outperformed by GP. The significance of this finding is not that GP is alchemy. Instead, it shows that novelties-discovering agents can be introduced into economic models, and their appearance inevitably presents threats to other agents who then have to react accordingly. Hence, a potentially indefinite cycle of change is triggered.
119-136
Springer
Chen, Shu-Heng
13f75ac4-9eeb-4601-b72a-edb0784d112b
Tai, Chung-Ching
b3370b23-7410-4254-99bc-6711046e1095
Takadama, Keiki
Cioffi-Revilla, Claudio
Deffuant, Guillaume
Chen, Shu-Heng
13f75ac4-9eeb-4601-b72a-edb0784d112b
Tai, Chung-Ching
b3370b23-7410-4254-99bc-6711046e1095
Takadama, Keiki
Cioffi-Revilla, Claudio
Deffuant, Guillaume

Chen, Shu-Heng and Tai, Chung-Ching (2010) The agent-based double auction markets: 15 Years On. In, Takadama, Keiki, Cioffi-Revilla, Claudio and Deffuant, Guillaume (eds.) Simulating interacting agents and social phenomena: The second world congress. (Agent based social systems, 7) Tokyo. Springer, pp. 119-136. (doi:10.1007/978-4-431-99781-8_9).

Record type: Book Section

Abstract

Novelties discovering as a source of constant change is the essence of economics. However, most economic models do not have the kind of novelties-discovering agents required for constant changes. This silence was broken by Andrews and Prager 15 years ago when they placed GP (genetic programming)-driven agents in the double auction market. The work was, however, neither economically well interpreted nor complete; hence the silence remains in economics. In this article, we revisit their model and systematically conduct a series of simulations to better document the results. Our simulations show that human-written programs, including some reputable ones, are eventually outperformed by GP. The significance of this finding is not that GP is alchemy. Instead, it shows that novelties-discovering agents can be introduced into economic models, and their appearance inevitably presents threats to other agents who then have to react accordingly. Hence, a potentially indefinite cycle of change is triggered.

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Published date: 2010

Identifiers

Local EPrints ID: 468214
URI: http://eprints.soton.ac.uk/id/eprint/468214
PURE UUID: df06aa1d-1a78-413f-b649-87eadb5b1a83
ORCID for Chung-Ching Tai: ORCID iD orcid.org/0000-0002-2557-177X

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Date deposited: 05 Aug 2022 16:52
Last modified: 06 Aug 2022 02:00

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Contributors

Author: Shu-Heng Chen
Author: Chung-Ching Tai ORCID iD
Editor: Keiki Takadama
Editor: Claudio Cioffi-Revilla
Editor: Guillaume Deffuant

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