Market Equilibrium in Heterogeneous Agent System

This research investigates market equilibrium dynamics in financial markets populated by heterogeneous agents. The project develops theoretical, computational, and simulation-based models to examine how differences in agents’ information, expectations, risk preferences, trading strategies, and behavioral rules affect asset prices, market stability, liquidity, volatility, and equilibrium formation. Publicly available financial market data will be used to calibrate selected model parameters, evaluate empirical patterns, and compare simulated market outcomes with observed market behavior. Agent-based simulations and numerical experiments will then be conducted to study the emergence, stability, and evolution of market equilibria under different assumptions and market conditions.