We study the emergence of strategic behavior in double auctions with an equal number of buyers and sellers, under the distinct assumptions that orders are cleared simultaneously or asynchronously. The evolution of strategic behavior is modeled as a learning process driven by a genetic algorithm....

In a discrete setting, a model is developed for pricing a contingent claim in incomplete markets. Since hedging opportunities influence the price of a contingent claim, the optimal hedging strategy is first introduced assuming that a contingent claim has been issued: a strategy implemented by...

This paper studies an order-driven stock market where agents have heterogeneous estimates of the fundamental value of the risky asset. The agents are budget-constrained and follow a value-based trading strategy which buys or sells depending on whether the price of the asset is below or above its...

In this paper we present a model of tax compliance with heterogeneous agents who maximize their individual utility based on income and the conjectured level of per capita public expenditure. We formally include psychological drivers in this model. These drivers affect individual behavior, such...

We study a modified version of the coordination game presented in [J. van Huyck, J. Cook, R. Battalio, Selection dynamics, asymptotic stability, and adaptive behavior, J. Polit. Econ. 102 (1994) 975–1005], where a representative selection dynamics was proposed to explain experimental data....

The concept of coopetition is founded on the complementarity‐based nature of this strategy. However, coopetition research has devoted relatively little attention to complementarity issues and their impact on coopetition results. By bridging the coopetition and economics of complementarities...

Agent-based models of market dynamics must strike a compromise between the structural assumptions that represent the trading mechanism and the behavioural assumptions that describe the rules by which traders make their decisions. We present a structurally detailed model of an order-driven stock...