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Showing papers presented at "Simulation of Adaptive Behavior in 2001"


Proceedings Article
01 Mar 2001
TL;DR: The relation between market diversity and market efficiency has been studied in this paper, where it was shown that more participants and individual learning cause higher degree of traders' diversity, which, in turn, enhances market efficiency.
Abstract: The relation between market diversity and market efficiency has been studied. Economic heterogeneity is a fundamental driving force and an essential property in the economic systems. People who have different perspectives, technologies, or endowments may benefit from their trading behavior which constitutes economic activities. In this paper, economic simulation based on the growing field of artificial stock market is employed to study this issue. Market size and different learning styles are used to discuss the influence of heterogeneity. Simulation results have demonstrated that more participants and individual learning cause higher degree of traders’ diversity, which, in turn, enhances market efficiency.

18 citations