Title :
Can Irrational Investors Survive? A Social-Computing Perspective
Author :
Zhang, Yongjie ; Zhang, Wei
Abstract :
Standard financial theory includes a rigorous theoretical system for equilibrium asset pricing. Among the assumptions this system is founded on is the necessity of investors´ homogeneity and rationality. The proposed agent-based model accounts for interactions between irrational and rational investors, expanding on existing work and offering hope for irrational-investor survival in artificial stock markets.
Keywords :
investment; multi-agent systems; pricing; social sciences computing; stock markets; agent-based model; artificial stock market; financial theory; pricing; social-computing perspective; Bridges; Computational modeling; Educational institutions; Equations; Finance; Investments; Mathematical model; Microscopy; Solids; Stock markets; agent-based computing; artificial intelligence; computer applications; computing methodologies; financial computing; social and behavioral sciences; social computing;
Journal_Title :
Intelligent Systems, IEEE
DOI :
10.1109/MIS.2007.4338495
