1 TRACKING THE INVISIBLE HAND: AN A.B.M. APPROACH TO CDA DESIGN WITH EVOLUTIONARY BEHAVIOUR

In this paper we examine the emergence of Nash efficient solutions for a Continuous Double Auction (CDA) market, since it is the dominant institution for the real-world trading of equities, energy, derivatives, etc. and there is a lot of valuable knowledge from Experimental Economics. We endow the soft-agents with Zero-Intelligence (ZI), Zero-Intelligence Plus (ZIP), Kaplan (K) and Gjerstad-Dickhaut (GD) ask-bidding strategies. Every class of agents in previous works has a fixed strategy. But we allow our soft-agents to change their strategies in an autonomous and evolutionary process. Instead of the modeler fixing the agents strategies and then calibrating the parameters to achieve Nash equilibrium we look for autonomous emergence of Nash efficiency. Thus, we extend previous works and we introduce evolutionary learning and adaptation