ABSTRACT
There are three major H -type models, namely Kirman’s ANT model (Kirman, 1993), Lux’s IAH model (Lux, 1995, 1998), and Brock and Hommes’ ABS model (Brock and Hommes, 1998). Among the three, the ANT model and the IAH model are similar in the sense that they rely heavily on herding; therefore, they can be considered together as herding-based agent-based financial models. Imitation or social learning is a key driving mechanism of the model. On the other hand, the ABS model is a typical performance-based model. Selection (evolution) is the key mechanism.
