This book takes up unique agent-based approaches to solving problems related to stock and their
derivative markets. Toward this end the authors have worked for more than 15 years on the
development of an artificial market simulator called U-Mart for use as a research and
educational tool. A noteworthy feature of the U-Mart simulator compared to other artificial
market simulators is that U-Mart is an ultra-realistic artificial stock and their derivative
market simulator. For example it can simulate arrowhead a next-generation trading system used
in the Tokyo Stock Exchange and other major markets as it takes into consideration the
institutional design of the entire market. Another interesting feature of the U-Mart simulator
is that it permits both human and computer programs to participate simultaneously as traders in
the artificial market. In this book first the details of U-Mart are explained enabling
readers to install and run the simulator on their computers for research and educational
purposes. The simulator thus can be used for gaming simulation of the artificial market and
even for users as agents to implement their own trading strategies for agent-based simulation
(ABS).The book also presents selected research cases using the U-Mart simulator. Here topics
include automated acquisition of trading strategy using artificial intelligence techniques
evaluation of a market maker system to treat thin markets such as those for small and regional
businesses systemic risk analysis of the financial market considering institutional design of
the market and analysis of how humans behave and learn in gaming simulation. New perspectives
on artificial market research are provided and the power potential and challenge of ABS are
discussed. As explained in this important work ABS is considered to be an effective tool as
the third approach of social science an alternative to traditional literary and mathematical
approaches.
