ABSTRACT
Introduction In the meantime things have changed a lot – the rational agent, representative or not, is no longer the main character on stage. Other characters came into play like bounded rational agents, heterogeneous agents, reciprocators, imitators. A recent survey on heterogeneous agent models in economics and finance starts with the following statement:
Economics and finance are witnessing an important paradigm shift, from a representative, rational agent approach towards a behavioral, agent-based approach in which markets are populated with boundedly rational, heterogeneous agents using rule of thumb strategies.
