Information Dissemination and Aggregation in Asset Markets with Simple Intelligent Traders (original) (raw)

Various studies of asset markets have s h o wn that traders are capable of learning and transmitting information through prices in many situations. In this paper we replace human traders with intelligent s o f t ware agents in a series of simulated markets. Using these simple learning agents, we are able to replicate several features of the experiments with human subjects, regarding (1) dissemination of information from informed to uninformed traders, and (2) aggregation of information spread over di erent traders.