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Micro versus macro behaviors.

In all tests we found the behavior for any particular run does not necessarily reflect the average behavior of the system. The prices have a tendency to get ``stuck'' into particular patterns, which eventually change. The results presented here, therefore, are based on averages of many runs. While these averages seem very stable, and a good first step in learning to understand these systems, in the future we will need to address micro-level issues. So far, we notice that the micro-level behaviors are much more closely tied, usually in intuitive ways, to the agents' learning rates tex2html_wrap_inline658 and exploration rates tex2html_wrap_inline634 . That is, higher rates (for both) lead to more volatile pricing behavior.

Jose M. Vidal
Wed Aug 21 07:12:37 EDT 1996