‘Agent-based modeling: a paradigm shifting in finance and economics?’ by Annalisa Fabretti
17:00 CET, 23 November 2022 - Phinance Online Seminars
Finance and economy are complex systems where many entities with different properties and roles interact continuously. The competitive equilibrium, developed by Arrow and Debreu in 1951, has been, to this day, the fundamental paradigm under which economists work. The traditional approach uses analytically tractable models with a representative perfectly rational agent, usually a profit maximizer. At the same time, in recent decades, economics and finance are experiencing a new approach, mostly known as agent-based computational economics, which some commentators claim is a paradigm shift attempt: from a representative rational agent approach towards a behavioral agent-based approach in which heterogeneous agents are seen as boundedly rational.
In this meeting of the Phinance Online Seminars, Annalisa Fabretti presents agent-based models encompassing their applications in economics and finance. She discusses whether such an approach can contribute to a paradigm shift. The meeting is followed by an open debate.
‘Agent-based modeling: a paradigm shifting in finance and economics?’ by Annalisa Fabretti
17:00 CET, 23 November 2022
Phinance Online Seminars are organized by Phinance, the Philosophy & Finance Network
17:00 Annalisa Fabretti (Roma - Tor Vergata)
18:00 Debate
Chair: Emiliano Ippoliti (Sapienza University of Rome)