Robot traders can prevent extreme events in complex stock markets

Nicolas Suhadolnik, Jaqueson Galimberti, Sergio Da Silva

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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.
Original languageEnglish
Pages (from-to)5182-5192
Number of pages10
JournalPhysica A: Statistical Mechanics and its Applications
Issue number22
Publication statusPublished - 15 Dec 2010


  • Econophysics
  • Financial regulation
  • Robot traders
  • Stock markets


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