Computational Economics

, Volume 29, Issue 1, pp 1–12 | Cite as

Rate of Return Parity with Robot Asset Traders



Human populated experimental asset markets produce data with two major qualitative consistencies; finite price bubbles and rate of return parity. Robot traders following different behavioural rules are used to create data that is qualitatively similar to that produced by human subjects in a laboratory setting. A trend pricing component of behaviour is required for robots to generate finite price bubbles. A single arbitrageur in combination with trend pricing and simple profit maximization is required to generate rate of return parity.


interest rate parity rate of return parity arbitrage 

JEL Classifications

C89 F3 G12 


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Copyright information

© Springer Science+Business Media, LLC 2006

Authors and Affiliations

  1. 1.University of New Brunswick Saint JohnSaint JohnCanada

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