The Predictive Power of Zero Intelligence in Financial Markets

Standard models in economics stress the role of intelligent agents who maximize utility. However, there may be situations where, for some purposes, constraints imposed by market institutions dominate intelligent agent behavior. We use data from the London Stock Exchange to test a simple model in whi...

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Bibliographic Details
Main Authors: Farmer, J, Patelli, P, Zovko, I
Format: Journal article
Published: 2003