We consider an environment in which traders search for trading opportunities and update their forecast rules at random intervals. The staggering of this updating process across traders allows differences in opinion to persist over time, generating non-trivial price dynamics

This paper considers the behavior of the exchange rate in a very simple artificial currency market with two currencies and artificial agents who evolve their forecast rules over time via a genetic algorithm. I consider two simple forecast rules, one linear and the other non-linear. Under the...