Economists and financial market researchers continue to explore alternatives to the representative agent paradigm.  The interactions of dynamic heterogeneous populations that are the foundation to agent-based modeling provide explanations for economic behavior that is often difficult to explain using traditional models.  The interaction of heterogeneous agents has been used to model business cycles and financial market phenomenon such as bubbles, excess volatility, clustering of returns, and currency crises.  Many financial market failures have been attributed non-equilibrium behavior.  The agent-based approach offers tools to formally examine disruptions to market equilibrium and out of equilibrium behavior.  As such, the agent-based approach offers considerable potential for explaining many aspects of market dysfunctionality

Director: David Goldbaum - University of Technology, Sydney

Heterogeneous Agent Modeling Research Group members
Abigail Brown - UTS
Carl Chiarella - UTS
Tony He - UTS
Valentyn Panchenko - UNSW