EconPapers    
Economics at your fingertips  
 

Robot traders can prevent extreme events in complex stock markets

Nicolas Suhadolnik (), Jaqueson Galimberti () and Sergio Da Silva ()

Physica A: Statistical Mechanics and its Applications, 2010, vol. 389, issue 22, 5182-5192

Abstract: If stock markets are complex, monetary policy and even financial regulation may be useless to prevent bubbles and crashes. Here, we suggest the use of robot traders as an anti-bubble decoy. To make our case, we put forward a new stochastic cellular automata model that generates an emergent stock price dynamics as a result of the interaction between traders. After introducing socially integrated robot traders, the stock price dynamics can be controlled, so as to make the market more Gaussian.

Keywords: Stock markets; Robot traders; Financial regulation; Econophysics (search for similar items in EconPapers)
Date: 2010
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378437110006527
Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000

Related works:
Working Paper: Robot traders can prevent extreme events in complex stock markets (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:389:y:2010:i:22:p:5182-5192

DOI: 10.1016/j.physa.2010.07.025

Access Statistics for this article

Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

More articles in Physica A: Statistical Mechanics and its Applications from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().

 
Page updated 2021-04-06
Handle: RePEc:eee:phsmap:v:389:y:2010:i:22:p:5182-5192