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Abstract

The market is evolving, and particularly remarkably recently. Algorithm dominance is rapidly developing. Algorithm-based evolution is not limited to the capability of exchange servers, and humans are being replaced by transaction algorithms.

The shift to high-frequency trading (HFT) has explicitly revealed the discrepancy between logical and practical transaction times. We no longer work in the realms of logical time. A slight difference in transaction speed or server design will affect the market results. We are also entering a new stage of surveillance because of the risk of illegal operations by traders. A brief look at market evolution shows a massive change in human relationships. Not only does developing algorithm dominance have an influence, but also the growing complexity, which gives rise to “the rich getting richer”. Standard economics, however, seems quite oblivious to these changes.

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Source: Aruka Y.. Evolutionary Foundations of Economic Science: How Can Scientists Study Evolving Economic Doctrines from the Last Centuries? Springer Japan,2015. — 234 p.. 2015
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