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Information dissemination in an experimentally based agent-based stock market

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  • Jakob Grazzini

Abstract

This paper builds an agent-based model to reproduce the results of an experimental stock market that studies how the market aggregates private information. The aim is to use experiments and agent-based modeling to analyze the trading behavior in experimental stock markets. Using the experimental environment and results, it is possible to formulate a hypothesis about the subjects’ behavior and thereby formalize (algorithmically) the trading behavior in an agent-based model. This may lead to a better understanding of how the market converges to an equilibrium and of the mechanism that allows dissemination of private information in the market. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Jakob Grazzini, 2013. "Information dissemination in an experimentally based agent-based stock market," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 8(1), pages 179-209, April.
    • Handle: RePEc:spr:jeicoo:v:8:y:2013:i:1:p:179-209
    DOI: 10.1007/s11403-013-0109-x
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