Within a universal agent-world interaction framework, based on Information Theory and Causal Bayesian Networks, we demonstrate how every agent that needs to acquire relevant information in regard to its strategy selection will automatically inject part of this information back into the...

One of the most frequent questions asked by economists is how individual members of societies make choices. It can be observed that economic agents imitate other agents’ actions. It should be asked why rational people choose to imitate other’s behaviour and make decisions that are not based...

The paper studies the impact of ambiguity on history-dependant beahviour in the standard microstructure model of financial markets. We show that differences in ambiguity attitudes between market makers and traders can generate contrarian and herding behaviour in stock markets where assets are...