Bottom-Up Simulation of a Stock MarketUsing a Thousand Fuzzy Agents

In this research the focus is on emergent behaviour in large groups of stockmarket participants. In contrast to established views of the capital market, we do notassume that market participants make rational investment decisions based on fullinformation about important macroeconomic figures such as interest or exchange rates.Nor is the market modelled top-down with mathematical equations. Instead, tradingdecisions and market behaviour are the result of individual participants reacting to stockprice and price changes. Each participant is modelled as a fuzzy agent that behavesaccording to simple trading rules. This is sufficient to create regular and complexmacroscopic stock price patterns...