Assets

The traded assets are an important characteristic of every agent-based market. There are mainly three major issues regarding the modelling of the traded assets: number of assets, types of assets and the assets’ properties.

Regarding the number of traded assets, the majority of agent-based markets have two different assets: a risk free asset and a risky asset. A small number of agent-based markets operate with more than two assets in the market, and this definitely leads to a complexity in the agent-based market and in the analysis of the asset price time series. Concerning the types of assets, in most of the agent-based markets, the agents have the choice of opting a risky asset and a risk-free or one of them. The risk-free asset could be cash or bonds, while the risky one could be a stock, a currency or even a security associated to a fundamental value such as the models in Farmer (1998) and Martinez-Jaramillo and Tsang (2009), or it could be associated with a fundamental value such as the one suggested by Lux (1998).

3.4.