Agent-based Stock Market Model

The stock market is the place in which stocks are released and transacted. Agent-basedmodel is the new development in computational economics field. Its core thought is toestablish economical system with computer, and to do lots of simulation experimentations tostudy complex economic phenomena. The paper is aim to study the stock price withagent-based model.This paper begins with the historical background of agent-based model, introduces thecomputation economics historical background of agent-based model and the development.This is also the aspect was neglected in agent-based model research. So it emphaticallyintroduces the thought of agent-based model, application and advantage by comparing withother models. Especially it has obvious superiority in the aspect of stock market researching.Then it simply introduces elementary knowledge relating with the stock and stock market,finally introduces the progress and researching results. Besides economist, the physicist, themathematician and the computer scientist and so on, they applied the different models,different methods and different theories to do massive research on stock market, this partnarrates in recent years the achievement and the progress using agent-based model to studystock market aspect. In the second part, the paper bases on the model of, at the same time itintroduces the idea of cellular automata to build lattice grid and to form neighbors. Usingdifferent type of agents' interacting to micro-simulate the operation of stock market, then toanalyze the data and tables gotten from micro-simulation, and to get some results. The thirdpart mainly elaborates the future work direction and researching methods.Agent-based model simulates stock market from the microscopic angle. Furthermore italso simulates the different investors' behavior to buy or sell the stock, and through lots ofdifferent agents' interaction to emerge characteristics of stock price in the real stock market.Combining the microscopic agents and macroscopic analysis methods, it shows lots of rulesof stock volatility.