Abstract:
Forecasting of economy has been difficult over the last 200 years. Financial market(
economy) is a complex system. Which is composed of many small elements
which act locally but react globally on whole system. Many economist try to predict
the financial market on the basis of different models. Recently a model which is called
agent base model has been developed .Agent base model is consisting of the heterogeneous
agents which are designed to do specific task locally and they can interact with
the other agents of system and the environment of system .Each and every agent shows
impact and overall system impact is the conclusive impacts of all agents in system. Agent
base modeling simulate the financial market through the interaction with different
agents which work on the different behavioral rules assigned to them. In this project
we are trying to develop an Agent base model which simulate the financial market in
which the agents are represented by investors of market. A program and simulation
is developed in C++. In this report we also try to explain the irrationality of different
investors which solve to different anomalies of financial market. we will discuss the
different dynamics of financial market.
