The effects of market structure on a heterogeneous evolving population of traders

Dan Ladley; Seth Bullock

doi:10.1007/978-3-540-71075-2_7

The effects of market structure on a heterogeneous evolving population of traders

Dan Ladley
, Seth Bullock

Research output: Chapter in Book/Report/Conference proceeding › Conference Contribution (Conference Proceeding)

1 Citation (Scopus)

Abstract

The majority of market theory is only concerned with centralised markets. In this paper, we consider a market that is distributed over a network, allowing us to characterise spatially (or temporally) separated markets. The effect of this modification on the behaviour of a market with a heterogeneous population of traders, under selection through a genetic algorithm, is examined. It is demonstrated that better-connected traders are able to make more profit than less connected traders and that this is due to a difference in the number of possible trading opportunities and not due to informational inequalities. A learning rule that had previously been demonstrated to profitably exploit network structure for a homogeneous population is shown to confer no advantage when selection is applied to a heterogeneous population of traders. It is also shown that better-connected traders adopt more aggressive market strategies in order to extract more surplus from the market.

Original language	English
Title of host publication	Emergent Intelligence of Networked Agents
Editors	Akira Namatame, Satoshi Kurihara, Hideyuki Nakashima
Publisher	Springer Berlin Heidelberg
Pages	83-97
Number of pages	15
ISBN (Electronic)	9783540710752
ISBN (Print)	9783540710738
DOIs	https://doi.org/10.1007/978-3-540-71075-2_7
Publication status	Published - 2007
Event	Fifth International Joint Conference on Autonomous Agents and Multi-agent Systems (AAMAS 2006) - Future University, Hakodate, Japan Duration: 8 May 2006 → 12 May 2006

Publication series

Name	Studies in Computational Intelligance
Publisher	Springer Berlin Heidelberg
Volume	56

Conference

Conference	Fifth International Joint Conference on Autonomous Agents and Multi-agent Systems (AAMAS 2006)
Country/Territory	Japan
City	Hakodate
Period	8/05/06 → 12/05/06

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10.1007/978-3-540-71075-2_7

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title = "The effects of market structure on a heterogeneous evolving population of traders",

abstract = "The majority of market theory is only concerned with centralised markets. In this paper, we consider a market that is distributed over a network, allowing us to characterise spatially (or temporally) separated markets. The effect of this modification on the behaviour of a market with a heterogeneous population of traders, under selection through a genetic algorithm, is examined. It is demonstrated that better-connected traders are able to make more profit than less connected traders and that this is due to a difference in the number of possible trading opportunities and not due to informational inequalities. A learning rule that had previously been demonstrated to profitably exploit network structure for a homogeneous population is shown to confer no advantage when selection is applied to a heterogeneous population of traders. It is also shown that better-connected traders adopt more aggressive market strategies in order to extract more surplus from the market.",

author = "Dan Ladley and Seth Bullock",

year = "2007",

doi = "10.1007/978-3-540-71075-2\_7",

language = "English",

isbn = "9783540710738",

series = "Studies in Computational Intelligance",

publisher = "Springer Berlin Heidelberg",

pages = "83--97",

editor = "Akira Namatame and Satoshi Kurihara and Hideyuki Nakashima",

booktitle = "Emergent Intelligence of Networked Agents",

address = "Germany",

note = "Fifth International Joint Conference on Autonomous Agents and Multi-agent Systems (AAMAS 2006) ; Conference date: 08-05-2006 Through 12-05-2006",

}

Ladley, D & Bullock, S 2007, The effects of market structure on a heterogeneous evolving population of traders. in A Namatame, S Kurihara & H Nakashima (eds), Emergent Intelligence of Networked Agents. Studies in Computational Intelligance, vol. 56, Springer Berlin Heidelberg, pp. 83-97, Fifth International Joint Conference on Autonomous Agents and Multi-agent Systems (AAMAS 2006), Hakodate, Japan, 8/05/06. https://doi.org/10.1007/978-3-540-71075-2_7

The effects of market structure on a heterogeneous evolving population of traders. / Ladley, Dan; Bullock, Seth.
Emergent Intelligence of Networked Agents. ed. / Akira Namatame; Satoshi Kurihara; Hideyuki Nakashima. Springer Berlin Heidelberg, 2007. p. 83-97 (Studies in Computational Intelligance; Vol. 56).

Research output: Chapter in Book/Report/Conference proceeding › Conference Contribution (Conference Proceeding)

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The effects of market structure on a heterogeneous evolving population of traders

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