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authors in the theory and applications of evolutionary finance models. An introduction to and the motivation of the modeling … strategies, discusses the relation to the Kelly rule and implications for asset pricing theory, and introduces a continuous …-time mathematical finance version. Applications are concerned with simulation studies of the market dynamics, empirical estimation of …
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Traditional finance is built on the rationality paradigm. This chapter discusses simple models from an alternative approach in which financial markets are viewed as complex evolutionary systems. Agents are boundedly rational and base their investment decisions upon market forecasting heuristics....
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The paper introduces a new simulation model of market dynamics by integrating several concepts of evolutionary … how the dynamics of market evolution shapes market performance and competition. The results of the simulation runs show a …
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In recent years, agent-based simulation has become a widely accepted tool when dealing with complexity in economics and …
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