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Dynamics of adaptive agents with asymmetric information

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arxiv cond-mat/0505771 v3 pith:UUAE4FAH submitted 2005-05-31 cond-mat.dis-nn cond-mat.stat-mech

classification cond-mat.dis-nncond-mat.stat-mech
keywords asymmetricdynamicaldynamicsinformationadaptiveagent-basedagentsapply
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We apply path-integral techniques to study the dynamics of agent-based models with asymmetric information structures. In particular, we devise a batch version of a model proposed originally by Berg et al. [Quant. Fin. 1 (2001) 203], and convert the coupled multi-agent processes into an effective-agent problem from which the dynamical order parameters in ergodic regimes can be derived self-consistently together with the corresponding phase structure. Our dynamical study complements and extends the available static theory. Results are confirmed by numerical simulations.

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