Tools
Tools
Chiaromonte, F. & Berte, M. (1998). Some Preliminary Experiments with the Financial "Toy-Room". IIASA Interim Report. IIASA, Laxenburg, Austria: IR-98-091
Preview |
Text
IR-98-091.pdf Download (354kB) | Preview |
Abstract
We describe some preliminary experiments realized with Financial "Toy-Room" (a micro-founded simulation environment for decentralized trade in a homogeneous financial asset). The experiments are aimed at testing the system, and exploring its flexibility in depicting specific contexts as sub-cases. For this purpose, we selected an issue that has been widely investigated in the literature: the existence and characterization of markets in which prices are (or are believed to be) "quality signals" passing information from informed to uninformed traders. In our out-of-equilibrium simulation analysis, we take agents to trade based on a "spread rule," and introduce "dis-synchronization" in agents' updating processes. Thus, we investigate how dis-synchronization, updating paces and spreads affect persistence of trade and the time-path of prices in extreme regimes (i.e. when all agents are informed, or all agents are uninformed).
| Item Type: | Monograph (IIASA Interim Report) |
|---|---|
| Research Programs: | Technological and Economic Dynamics (TED) |
| Depositing User: | IIASA Import |
| Date Deposited: | 15 Jan 2016 02:10 |
| Last Modified: | 27 Aug 2021 17:16 |
| URI: | https://pure.iiasa.ac.at/5560 |
Actions (login required)
 |
View Item |