Exploring the Impact of Competing Narratives on Financial Markets II: An Opinionated Trader Agent-Based Model with Dynamic Feedback

Arwa Bokhari, Arwa Bokhari

2024

Abstract

Employing an agent-based trading model integrated with opinion dynamics, we conduct a systematic exploration of the factors potentially contributing to financial market frenzies. Applying our previously established testbed described in detail in a companion paper (part I), we examine the influence of two competing narratives on three hypotheses: self-reinforcement; herding; and an additive response to inputs. Utilizing a real-world dataset, we investigate these dynamics. Our findings reveal that although all three hypotheses affect price movements, herding behavior has the most substantial impact. The source code for these simulations is avail-able on Github, allowing researchers to replicate and extend our work.

Paper Citation

in Harvard Style

Bokhari A. (2024). Exploring the Impact of Competing Narratives on Financial Markets II: An Opinionated Trader Agent-Based Model with Dynamic Feedback. In Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 1: ICAART; ISBN 978-989-758-680-4, SciTePress, pages 138-148. DOI: 10.5220/0012456500003636

in Bibtex Style

@conference{icaart24,
author={Arwa Bokhari},
title={Exploring the Impact of Competing Narratives on Financial Markets II: An Opinionated Trader Agent-Based Model with Dynamic Feedback},
booktitle={Proceedings of the 16th International Conference on Agents and Artificial Intelligence - Volume 1: ICAART},
year={2024},
pages={138-148},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012456500003636},
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 II: An Opinionated Trader Agent-Based Model with Dynamic Feedback
SN - 978-989-758-680-4
AU - Bokhari A.
PY - 2024
SP - 138
EP - 148
DO - 10.5220/0012456500003636
PB - SciTePress