Tobin tax introduction and risk analysis in the Java']Java simulation

This paper deals with the agent-based simulation. The aim of the paper supported by the hypothesis is to prove positive impact of Tobin tax introduction together with the risk analysis on the stability of financial market. The core of the paper is the Java implementation of the multi-agent system being served as simulation framework. Multi-agent systems consist of a significant number of cooperating elements, so called intelligent agents. A multi-agent financial market model and simulation is introduced. Intelligent agents follow technical and fundamental trading rules to determine their speculative investment positions. We consider direct interactions between speculators due to which they may decide to change their trading behaviour. For instance, if a technical trader meets a fundamental trader and they realize that fundamental trading has been more profitable than technical trading in the recent past, the probability that the technical trader switches to fundamental trading rules is relatively high. In particular the influence of transaction costs and risk is studied.