Exploring the Impact of Competing Narratives on Financial Markets I: An Opinionated Trader Agent-Based Model as a Practical Testbed

Arwa Bokhari, Arwa Bokhari

2024

Abstract

This paper introduces a framework to empirically investigate the influence of competing narratives on financial market dynamics. We present an agent-based model of traders in a financial market, where traders are driven by opinion dynamics and are subject to self-reinforcement, herding behaviors, and an accumulative response to new information. Our systematic approach includes isolating these factors, enabling a parametric analysis within the collective opinion dynamics of the market. Our simulation provides a testbed to evaluate various market scenarios. While our findings are based on simulated data and thus warrant caution in real-world interpretation, they offer important insights into market fluctuations. This study lays groundwork for further research on trader behavior and market dynamics, and we have made the source-code publicly available for replication and extension.

Paper Citation

in Harvard Style

Bokhari A. (2024). Exploring the Impact of Competing Narratives on Financial Markets I: An Opinionated Trader Agent-Based Model as a Practical Testbed. In Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 1: ICAART; ISBN 978-989-758-680-4, SciTePress, pages 127-137. DOI: 10.5220/0012429500003636

in Bibtex Style

@conference{icaart24,
author={Arwa Bokhari},
title={Exploring the Impact of Competing Narratives on Financial Markets I: An Opinionated Trader Agent-Based Model as a Practical Testbed},
booktitle={Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 1: ICAART},
year={2024},
pages={127-137},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012429500003636},
isbn={978-989-758-680-4},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 1: ICAART
TI - Exploring the Impact of Competing Narratives on Financial Markets I: An Opinionated Trader Agent-Based Model as a Practical Testbed
SN - 978-989-758-680-4
AU - Bokhari A.
PY - 2024
SP - 127
EP - 137
DO - 10.5220/0012429500003636
PB - SciTePress