Paradigm shifts
The author studies the evolution of the number of coexisting beliefs in a financial market. Crucially, he undertakes to do so in a framework where the paradigms, beliefs, and models driving agents behavior are left totally unspecified; i.e., the author does not make any parametric or non-parametric...
| Main Author: | |
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| Format: | Article |
| Language: | English |
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De Gruyter
2019-12-01
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| Series: | Economics: Journal Articles |
| Subjects: | |
| Online Access: | https://doi.org/10.5018/economics-ejournal.ja.2019-43 |
| _version_ | 1818112415188910080 |
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| author | Maugis Pierre-André Guy |
| author_facet | Maugis Pierre-André Guy |
| author_sort | Maugis Pierre-André Guy |
| collection | DOAJ |
| description | The author studies the evolution of the number of coexisting beliefs in a financial market. Crucially, he undertakes to do so in a framework where the paradigms, beliefs, and models driving agents behavior are left totally unspecified; i.e., the author does not make any parametric or non-parametric model assumptions. The overreaching aim of this exercise is to characterise the dynamic of the variety of beliefs in an auction-based financial market independently of any assumptions on agents behaviors. The resulting framework may be seen as an abstract agent-based model. In a computer experiment the authors exhibits a cycle between two states, so that either all agents act according to the same belief, or there is no leading belief; i.e., there is one dominating belief, or none. Further, the author finds that the frequency of this cycle is positively linked to the quality of the information available to the agents. |
| first_indexed | 2024-12-11T03:18:34Z |
| format | Article |
| id | doaj.art-999da9f8d77b40f8a22d24113bb7b583 |
| institution | Directory Open Access Journal |
| issn | 1864-6042 |
| language | English |
| last_indexed | 2024-12-11T03:18:34Z |
| publishDate | 2019-12-01 |
| publisher | De Gruyter |
| record_format | Article |
| series | Economics: Journal Articles |
| spelling | doaj.art-999da9f8d77b40f8a22d24113bb7b5832022-12-22T01:22:41ZengDe GruyterEconomics: Journal Articles1864-60422019-12-0113110.5018/economics-ejournal.ja.2019-43Paradigm shiftsMaugis Pierre-André Guy0University College London,UKThe author studies the evolution of the number of coexisting beliefs in a financial market. Crucially, he undertakes to do so in a framework where the paradigms, beliefs, and models driving agents behavior are left totally unspecified; i.e., the author does not make any parametric or non-parametric model assumptions. The overreaching aim of this exercise is to characterise the dynamic of the variety of beliefs in an auction-based financial market independently of any assumptions on agents behaviors. The resulting framework may be seen as an abstract agent-based model. In a computer experiment the authors exhibits a cycle between two states, so that either all agents act according to the same belief, or there is no leading belief; i.e., there is one dominating belief, or none. Further, the author finds that the frequency of this cycle is positively linked to the quality of the information available to the agents.https://doi.org/10.5018/economics-ejournal.ja.2019-43agent based modelinformation cascadeherding behaviorg40 |
| spellingShingle | Maugis Pierre-André Guy Paradigm shifts Economics: Journal Articles agent based model information cascade herding behavior g40 |
| title | Paradigm shifts |
| title_full | Paradigm shifts |
| title_fullStr | Paradigm shifts |
| title_full_unstemmed | Paradigm shifts |
| title_short | Paradigm shifts |
| title_sort | paradigm shifts |
| topic | agent based model information cascade herding behavior g40 |
| url | https://doi.org/10.5018/economics-ejournal.ja.2019-43 |
| work_keys_str_mv | AT maugispierreandreguy paradigmshifts |