This book pursues a nonlinear approach in considering both chaotic dynamical models and agent-based simulation models of economics, as well as their dynamical behaviors. Three key concepts arising in this context are “nonlinearity,” “bounded rationality” and “heterogeneity,” which...

The field of artificial economics (AE) embraces a broad range of methodologies relying on computer simulations in order to model and study the complexity of economic and social phenomena. The overarching principle of AE is the analysis of aggregate properties of artificial economies populated by...

Introduction -- Technological Progress: Logistic Growth or Singularity -- Artificial Intelligence -- Artificial Happiness -- Issues in Artificial Intelligence -- Artificial Intelligence in Economics: ACE -- Economics of Artificial Intelligence -- State of the Art, Challenges for AGI

Markets and Trading -- Agent’s Minimal Intelligence Calibration for Realistic Market Dynamics -- Trading on Marginal Information -- Stylized Facts Study through a Multi-Agent Based Simulation of an Artificial Stock Market -- Auctions -- A Variable Bid Increment Algorithm for Reverse English...

Managing Uncertainty, Mitigating Risk proposes that financial risk management broaden its approach, maintaining quantification where possible, but incorporating uncertainty. The author shows that by using broad quantification techniques, and using reason as the guiding principle, practitioners...

The scope of this volume is primarily to analyze from different methodological perspectives similar valuation and optimization problems arising in financial applications, aimed at facilitating a theoretical and computational integration between methods largely regarded as alternatives....

Framing the Risk Challenge -- Understanding the Hidden Risk of Dynamic Complexity -- Understanding the Nature of Risk -- Human Interaction and Perception of Risk -- Risk Evolves as Experience Evolves -- Why the Risk Comes as a Surprise -- Systemic and Systematic Risk -- How Risk is Currently...

General Remarks on Robust Solutions -- Modeling of Uncertainty and Probabilistic Issues -- On Joint Modelling of Random Uncertainty and Fuzzy Imprecision -- On the Approximation of a Discrete Multivariate Probability Distribution Using the New Concept of -Cherry Junction Tree -- Robust Solutions...

Ongoing global changes pose fundamentally new scientific problems requiring new concepts and tools. A key issue concerns a vast variety of practically irreducible uncertainties, which challenge traditional models and require new concepts and analytical tools. Uncertainty can dominate, as in the...