Abstract
Although the influence of intelligence on market performance has long been discussed, in this paper we provide a broader scope for examining this issue. The performance in a market composed of zero-intelligence traders is compared with that in a market where traders are endowed with the simple adaptive learning method or GP-based learning algorithm both without and with Boolean functions. Market properties such as the price, return, trading volume, and heterogeneity among traders are provided to analyze the role of intelligence. We find that the influence of intelligence on the market crucially depends on the representation of intelligence or the learning method
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Yeh, CH. The role of intelligence in time series properties. Comput Econ 30, 95–123 (2007). https://doi.org/10.1007/s10614-007-9089-z
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DOI: https://doi.org/10.1007/s10614-007-9089-z