The use of artificially intelligent agents with bounded rationality in the study of economic markets
- Univ. of Minnesota, Minneapolis, MN (United States)
The concepts of {open_quote}knowledge{close_quote} and {open_quote}rationality{close_quote} are of central importance to fields of science that are interested in human behavior and learning, such as artificial intelligence, economics, and psychology. The similarity between artificial intelligence and economics - both are concerned with intelligent thought, rational behavior, and the use and acquisition of knowledge - has led to the use of economic models as a paradigm for solving problems in distributed artificial intelligence (DAI) and multi agent systems (MAS). What we propose is the opposite; the use of artificial intelligence in the study of economic markets. Over the centuries various theories of market behavior have been advanced. The prevailing theory holds that an asset`s current price converges to the risk adjusted value of the rationally expected dividend stream. While this rational expectations model holds in equilibrium or near-equilibrium conditions, it does not sufficiently explain conditions of market disequilibrium. An example of market disequilibrium is the phenomenon of a speculative bubble. We present an example of using artificially intelligent agents with bounded rationality in the study of speculative bubbles.
- OSTI ID:
- 430641
- Report Number(s):
- CONF-960876-; TRN: 96:006521-0016
- Resource Relation:
- Conference: 13. National conference on artifical intelligence and the 8. Innovative applications of artificial intelligence conference, Portland, OR (United States), 4-8 Aug 1996; Other Information: PBD: 1996; Related Information: Is Part Of Proceedings of the thirteenth national conference on artificial intelligence and the eighth innovative applications of artificial intelligence conference. Volume 1 and 2; PB: 1626 p.
- Country of Publication:
- United States
- Language:
- English
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