Description of the Workshop

Artificial Market is a research area emerged from agent-based social simulations in which traders are implemented as "agent." At the beginning of the research, artificial market mimics the real market. But nowadays, the real market is becoming increasingly similar to the artificial market. Recently, the real market is dominated by the algorithmic trading of computer agents. These algorithms are too fast and too insatiable to manage by the human. As a result, they often caused a flash crash in the market. In addition to that, the new types of economic technologies such as blockchain and crowdfunding are gaining a popularity. In order to get along with them, we have to understand and learn how to control them. The artificial market will be the most effective tools for this purpose.

The IWAM 2018 aims to provide a discussion forum for researchers and practitioners who are interested in the artificial market and relevant issues. We are inviting new and unpublished papers on, but not limited to:

  • Artificial Market
  • Market Mechanism Design
  • Blockchain
  • Agent-Based Modeling and Simulation
  • Econophysics
  • Complex Systems
  • Multi-agent System
  • Emergent Behavior
  • Data Analysis
  • Machine Learning
  • Artificial Intelligence
  • System Dynamics
  • Game Theory

The workshop will be held in conjunction with the 21st International Conference on Principles and Practice of Multi-Agent Systems (PRIMA 2018), in Tokyo, Japan.

Important Dates

  • Submission Deadline: September 14 September 21, 2018
  • Notification of Acceptance: September 24 September 31, 2018
  • Camera-ready Submission: October 10, 2018
  • Workshop Date: October 30, 2018

Information for Authors

Each paper will conduct a blind review. All submissions should be up to 16 pages following the Springer LNCS format. All papers should be submitted electronically using the EasyChair conference management system in PDF format and formatted accordingly. The organizers are arranging the publication of the post proceedings of PRIMA Workshops as a special issue of Evolutionary and Institutional Economics Review.

Program

IWAM 2018 is a one-day workshop with two invited talks.

Workshop Program

  • 09:30-10:00: Registration
  • 10:00-11:00: Invited Talk 1 (Prof. Shiozawa) abstract
  • 11:00-11:15: Tea Break
  • 11:15-11:40: Impact on Financial Markets of Dark Pools, Large Investor, and HFT, Shin Nishioka, Kiyoshi Izumi, Wataru Matsumoto, Takashi Shimada, Hiroki Sakaji and Hiroyasu Matsushima paper
  • 11:40-12:05: Systemic Risk in Order Driven Market, Yoshihiro Nakajima, Isao Ono and Naoki Mori paper
  • 12:05-13:30: Lunch
  • 13:30-14:30: Invited Talk 2 (Prof. Aruka) abstract
  • 14:30-14:45: Tea Break
  • 14:45-15:10: Multi-factor Productivity and Evolutionary Accounting in Presence of (Persistently) Heterogeneous Firms, Giovanni Dosi, Marco Grazzi, Le Li, Luigi Marengo and Simona Settepanella paper
  • 15:10-15:35: Impact Assessments of the CAR Regulation using Artificial Markets, Masanori Hirano, Kiyoshi Izumi, Hiroki Sakaji, Takashi Shimada and Hiroyasu Matsushima paper
  • 15:35-16:00: U-Mart Toolkit: A General-Purpose Artificial Market Development Toolkit Library, Isao Ono, Naoki Mori and Yoshihiro Nakajima paper
  • 16:00-16:25: Estimating Hidden Relation in Economic Activity, Hiroshi Sato, Tran Kien, Masao Kubo paper

Invited Speakers

Prof. Yoshinori Shiozawa, Osaka City University

  • Title: Economics and the Third Mode of Scientific Research Method
  • Abstract: Simulation is the third mode of scientific research method, after the theory and the experiment (including the observational study). Agent-based simulation, or multi-agent systems analysis, is for economics the third mode of scientific research method after theory and empirical studies. Artificial market is a typical example of agent-based simulation. In this presentation, I first argue the status of agent-based simulation in economics: Why do we need agent-based simulation? In which aspect of research can the agent-based simulation make the greatest contribution to the further development of economics? To elucidate these questions we need a short history of economics.
    Economics started as a kind of natural history of human society and was descriptive in its nature. Method of argument was philosophical and written in prose. In the latter half of the 19th century, mathematics was gradually introduced into economics and this made tremendous influences on the logical structure of theoretical economics. Two main features of methods can be detected: (1) maximization method and (2) equilibrium. Combining these two features the idea of General Equilibrium emerged and culminated in the work of Arrow and Debreu in 1950's. Both Arrow and Debreu received separately Nobel Prize in Economics (The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel) in 1972 and 1983 respectively. Arrow and Debreu's theory became the core of microeconomics and was praised or boasted as "the most important intellectual contribution that economic thought has made to the general understanding of social processes." (Arrow and Hahn 1971 p.1; Hahn 1984 p.64) Later development in macroeconomics was deeply influenced by this achievement. A typical example is the Dynamical Stochastic General Equilibrium model which is accepted as main framework of macroeconomic analysis by both New Classical and New Keynesian economics which compose two main strands of the current mainstream economics. However, Arrow and Debreu's model had serious defects as a basic theory of economics by two reasons: (1) One must assume for human agents infinite capabilities for information collecting and computation, whereas it is well known that human being has but limited capabilities in sight and rationality. (2) Equilibrium framework suppresses all dynamic features of economic processes. See for more details Shiozawa (2016).
    Even an economist like Frank Hahn who was a leading economist of the GET admitted that economic analysis must be "sequential in an essential way" (Hahn 1984 p.53). Such recognition did not lead economics to a revolution of economic analysis, because economics lacked a good method for analyzing sequential events. In addition, complex interaction between agents must be incorporated. Mathematics was not well suited to this requirement. It needed the third mode of scientific research method which is in case of economics the agent-based simulation. Thus, agent-based simulation opens a new possibility for economic sciences and we can expect that a good application of this method really revolutionizes economics in the future. For this prospectus to be realized, however, a good combination of conceptual work, mathematics, and simulation is necessary. The artificial market is providing a successful example of such a combination, but economics requires further theoretical works in order to incorporate simulation method at its core. In this presentation, I propose a new scheme of economics and consider further roles that simulation can play in it.

Prof. Yuji Aruka, Chuo University

  • Title:Hodgson’s Bibliometric Report and the Reconstruction Plan of Economics
  • Abstract: This article was originally designed to comment an unprecedented bibliometric study of evolutionary economics by Hodgson and Lamberg (Evol Inst Econ Rev 15, 2016). However, Hodgson only reported the historical trajectory and the current situations of evolutionary economics initiated by Nelson and Winter (An evolutionary theory of economic change. Belknap Press of Harvard University Press, Cambridge, 1982). He gave an insightful consideration about the raison d’être of evolutionary economics. According to his opinion, evolutionary economics is still failing to equip the core theories. We naturally agree with his remarks on the current situations around evolutionary economics. We take this opportunity to squarely address the subject about how to insert the core theories into evolutionary economics. We argue that the alternative candidates to be replaced with the main stream core theories are in the following ordering: (1) the theory of production to invalidate myopic optimization, (2) the theory of preference to invalidate myopic optimization, (3) the SMD Theorem to invalidate invisible hand, and (4) the market mechanism to invalidate the efficiency market hypothesis. Needless to say, the alternative theories shown in these arguments imply the reconstruction of economics. Finally, we address the current analysis of bibliometrics.

Program Committee

  • Prof. Yuji Aruka, Chuo University (Japan)
  • Prof. Takao Terano, AIST/Tokyo-Tech (Japan)
  • Prof. Thomas Lux, Kiel University (Germany)
  • Prof. Mauro Gallegati, Marche Polytechnic University (Italy)
  • Prof. Shu-Heng Chen, AI-ECON, National Chengchi University (Taiwan)
  • Prof. Enrico Scalas, University of Sussex (United Kingdom)
  • Prof. Hajime Kita, Kyoto University (Japan)
  • Prof. Hiroyuki Matsui, Kyoto University (Japan)
  • Prof. Yoshihiro Nakajima, Osaka City University (Japan)
  • Prof. Kiyoshi Izumi, Tokyo University (Japan)
  • Dr. Naoki Mori, Osaka Prefecture University (Japan)
  • Dr. Takashi Yamada, Yamaguchi University (Japan)
  • Dr. Isao Yagi, Kanagawa Institute of Technology (Japan)
  • Dr. Isao Ono, Tokyo Instituted of Technology (Japan)
  • Dr. Hiroshi Sato, National Defense Academy (Japan)
  • Workshop Organizers

  • Dr. Isao Ono, Tokyo Instituted of Technology (Japan)
  • Dr. Hiroshi Sato, National Defense Academy (Japan)