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Berlin 2015 – wissenschaftliches Programm

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SOE: Fachverband Physik sozio-ökonomischer Systeme

SOE 4: Financial Markets and Risk Management

SOE 4.3: Vortrag

Montag, 16. März 2015, 11:15–11:30, MA 001

Influence of response time on traders' performances: a double-auction model analysis — •Guanghao Liu1, Yu Chen2, Fujio Toriumi1, and Hirotada Ohashi11Department of Systems Innovation, the University of Tokyo, Japan — 2Department of Human and Engineered Environmental Studies, the University of Tokyo, Japan

The influence of the response time of traders on their performances is investigated by using a multi-agent continuous double auction model. In this model, every agent can access the same information. They make decisions with the same type of strategy, but the decisions are not identical because of the random coefficients in the strategy at every time step. A time delay, referred to in this study as "the response time", is used to describe the time interval between the time one agents accesses the information and the time he sends an order. Orders will be executed on their arrival according to their price. We check the model by obtaining several stylized facts of financial markets such as the so-called fat-tail distributions and volatility clustering. The simulation results show that the agents with the shortest response time could not always get the highest wealth. To clarify the influence of the response time of an agent on his wealth in different conditions, several investment strategies and market rules are investigated.

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