Cognitive Agents Behaving in a Simple Stock Market Structure

  • Pietro Terna
Part of the Advances in Computational Economics book series (AICE, volume 17)


We introduce here the SUM model-the Surprising (Un)realistic Market model-an agent based framework that allows us to deal with the micro-foundations of a stock market. We avoid any artificially simplified solution about price formation, such as to employ an auctioneer to clear the market; on the contrary, our model produces time series of prices continuously evolving, transaction by transaction.


Artificial Neural Network Cognitive Agent External Objective Random Coefficient Current Price 
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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Pietro Terna
    • 1
  1. 1.Dipartimento di Scienze economiche e finanziarie G.PratoUniversità di TorinoTorinoItaly

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