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Modeling speculators with genetic programming

  • Genetic Programming: Issues and Applications
  • Conference paper
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Evolutionary Programming VI (EP 1997)

Part of the book series: Lecture Notes in Computer Science ((LNCS,volume 1213))

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Abstract

In spirit of the earlier works done by Arthur (1992) and Palmer et al. (1993), this paper models speculators with genetic programming (GP) in a production economy (Muthian Economy). Through genetic programming, we approximate the consequences of “speculating about the speculations of others”, including the price volatility and the resulting welfare loss. Some of the patterns observed in our simulations are consistent with findings in experimental markets with human subjects. For example, we show that GP-based speculators can be noisy by nature. However, when appropriate financial regulations are imposed, GP-based speculators can also be more informative than noisy.

This paper is an abbreviated version of Chen, Yeh and Chang (1996). Research support from NSC grant No.84-2415-H-004-001 and No.84-2415-H-004-001-l is gratefully acknowledged. The authors are grateful to two anonymous referees for constructive suggestions on an earlier draft and to Wei-Chuan Chang for excellent research assistance. All the simulations are conducted in Laboratory for the Advancement of Economics Education, funded by the Ministry of Edition and National Chengchi University.

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Author information

Authors and Affiliations

  1. AI-ECON Research Group Department of Economics, National Chengchi University, 11623, Taipei, Taiwan

    Shu-Heng Chen & Chia-Hsuan Yeh

Authors
  1. Shu-Heng Chen
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  2. Chia-Hsuan Yeh
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Editor information

Peter J. Angeline Robert G. Reynolds John R. McDonnell Russ Eberhart

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© 1997 Springer-Verlag Berlin Heidelberg

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Chen, SH., Yeh, CH. (1997). Modeling speculators with genetic programming. In: Angeline, P.J., Reynolds, R.G., McDonnell, J.R., Eberhart, R. (eds) Evolutionary Programming VI. EP 1997. Lecture Notes in Computer Science, vol 1213. Springer, Berlin, Heidelberg. https://doi.org/10.1007/BFb0014807

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  • DOI: https://doi.org/10.1007/BFb0014807

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  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-62788-3

  • Online ISBN: 978-3-540-68518-0

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