Impact of misalignment of trading agent strategy across multiple markets

Jung Woo Sohn, Sooyeon Lee, Tracy Mullen

Research output: Chapter in Book/Report/Conference proceedingConference contribution

4 Scopus citations

Abstract

We examine the effect of a market pricing policy designed to attract high-valued traders in a multiple market context using JCAT software. Our experiments show that a simple change to pricing policy can create market performance effects that traditional adaptive trading agents are unable to recognize or capitalize on, but that market-policy-aware trading agents can generally obtain. This suggests as parameterized and tunable markets become more common, trading strategies will increasingly need to be conditional on each individual market's policies.

Original languageEnglish (US)
Title of host publicationAuctions, Market Mechanisms and Their Applications - First International ICST Conference, AMMA 2009, Revised Selected Papers
Pages40-54
Number of pages15
DOIs
StatePublished - 2009
Externally publishedYes
Event1st Conference on Auctions, Market Mechanisms, and Their Applications, AMMA 2009 - Boston, MA, United States
Duration: May 8 2009May 9 2009

Publication series

NameLecture Notes of the Institute for Computer Sciences, Social-Informatics and Telecommunications Engineering
Volume14 LNICST
ISSN (Print)1867-8211

Conference

Conference1st Conference on Auctions, Market Mechanisms, and Their Applications, AMMA 2009
Country/TerritoryUnited States
CityBoston, MA
Period5/8/095/9/09

All Science Journal Classification (ASJC) codes

  • Computer Networks and Communications

Keywords

  • Market design
  • Market selection strategy
  • Multiple markets
  • Pricing policy
  • Trading strategy

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