Can learning affect the effectiveness of price limits?

Author

Yeh, Chia-Hsuan ; Yang, Chun-Yi

Author_Institution

Dept. of Inf. Manage., Yuan Ze Univ., Chungli, Taiwan

fYear

2012

fDate

10-15 June 2012

Firstpage

1

Lastpage

8

Abstract

This paper examines how different learning methods may affect the effectiveness of price limits. We consider three different learning styles: zero-intelligence (ZI), zero-intelligence-plus (ZIP), and genetic programming learning. Our results indicate that the different learning behavior indeed gives rise to different impacts on the market. Therefore, policy makers have to take into account traders´ learning styles when they plan to impose financial regulations on the market so as to achieve the effects they expected.

Keywords

genetic algorithms; pricing; stock markets; financial market; financial regulation; genetic programming learning; learning behavior; learning method; market impact; policy making; price limit effectiveness; stock market; trader learning style; zero-intelligence-plus learning; Barium; Biological system modeling; Forecasting; Learning systems; Silicon; Stock markets; Time series analysis; Agent-Based Modeling; Artificial Stock Market; Genetic Programming; Learning; Price Limits;

fLanguage

English

Publisher

ieee

Conference_Titel

Evolutionary Computation (CEC), 2012 IEEE Congress on

Conference_Location

Brisbane, QLD

Print_ISBN

978-1-4673-1510-4

Electronic_ISBN

978-1-4673-1508-1

Type

conf

DOI

10.1109/CEC.2012.6256582

Filename

6256582