Is sophisticated hierarchical thinking useful?

Author

Yeh, Chia-Hsuan

Author_Institution

Dept. of Inf. Manage., Yuan-Ze Univ., Chung-li, Taiwan

Volume

4

fYear

2003

fDate

8-12 Dec. 2003

Firstpage

2330

Abstract

The influence of smartness on market performance has been discussed for a long time. The smartness of the traders is modeled by the strongly-typed genetic programming (Montana, 1995), which is implemented by using Boolean functions to represent traders´ expectations under a constrained syntactic structure. Our simulation results indicate that the greatest profits earners did not employ Boolean functions to form their expectations for approximately 71.66% of the periods. However, they may also benefit from using sophisticated hierarchical thinking. Sometimes, these strategies are quite complicated. In addition, the aggregate behavior induced by the traders with the ability to evolve sophisticated hierarchical thinking can help improve market performance, e.g., less risk, lower transaction costs, and market efficiency.

Keywords

Boolean functions; commerce; complete computer programs; forecasting theory; genetic algorithms; programming language semantics; stock markets; Boolean function; constrained syntactic structure; genetic programming; market efficiency; market performance; sophisticated hierarchical thinking; transaction cost; Aggregates; Boolean functions; Costs; Dinosaurs; Genetic programming; History; Information management; Pattern recognition; System testing; Thumb;

fLanguage

English

Publisher

ieee

Conference_Titel

Evolutionary Computation, 2003. CEC '03. The 2003 Congress on

Print_ISBN

0-7803-7804-0

Type

conf

DOI

10.1109/CEC.2003.1299379

Filename

1299379