Re: [Swarm-Modelling] [Fwd: Re: [ABMs in finance]

[Marcus G. Daniels]

Pietro Terna wrote:
>         May be I'm too radical, but theory or data mining don't show 
> that simple random behaving agents, if acting in a time sequence, tick 
> per tick, produce bubbles or crasches.
All I'm really saying is that, all things being equal, a parsimonious 
explanation is better than a complex one.
If an ABM doesn't get the big picture right, or does with lots of 
parameter settings that are hard to justify, but happens to have bubbles 
and crashes, that's no better either.

Here's perhaps a more appropriate paper for the topic.  Here simulation 
is employed, but minimalistically.

http://www.santafe.edu/~jdf/papers/05-10-039.pdf
> We can show the emergence only via simulation (agent based). 
Possibly, but the parenthetical bit there, to me, especially seems like 
an act of faith.