Parameterised-Response Zero-Intelligence Traders

  title={Parameterised-Response Zero-Intelligence Traders},
  author={Dave Cliff},
  journal={CompSciRN: Industry Practical Application (Topic)},
  • D. Cliff
  • Published 21 March 2021
  • Computer Science, Economics
  • CompSciRN: Industry Practical Application (Topic)
I introduce PRZI (Parameterised-Response Zero Intelligence), a new form of zero-intelligence trader intended for use in simulation studies of auction markets. Like Gode & Sunder's classic Zero-Intelligence Constrained (ZIC) trader, PRZI generates quote-prices from a random distribution over some specified domain of discretely-valued allowable quote-prices. Unlike ZIC, which uses a uniform distribution to generate prices, the probability distribution in a PRZI trader is parameterised in such a… 
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  • D. Cliff
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