If stock markets are complex, monetary policy and even financial regulation may be useless to prevent bubbles and crashes. Here, we suggest the use of robot traders as an anti-bubble decoy. To make our case, we put forward a new stochastic cellular automata model that generates an emergent stock price dynamics as a result of the interaction between traders. After introducing socially integrated robot traders, the stock price dynamics can be controlled, so as to make the market more Gaussian. © 2010 Elsevier B.V. All rights reserved.
|Number of pages||10|
|Journal||Physica A: Statistical Mechanics and its Applications|
|Publication status||Published - 15 Dec 2010|
- Financial regulation
- Robot traders
- Stock markets