Stability of Financial Market: The Introduction to the JAVA']JAVA Simulation of Agent-Based Model

Computational social science involves the use of agent-based modeling and simulation (ABMS) to study complex social systems. ABMS consists of a set of agents and a framework for simulating their decisions and interactions. ABMS is related to a variety of other simulation techniques, including discrete event simulation and distributed artificial intelligence or multi-agent systems. In practice, each agent has only partial knowledge of other agents and each agent makes its own decisions based on the partial knowledge about other agents in the system. For purposes of this paper, a multi-agent system will be implemented as a simulation framework in JADE development platform (JAVA programming language). The motivation was to use the agent-based simulation of the Tobin tax introduction together with the risk analysis and to investigate their impact on the stability of financial market. The hypothesis was that Tobin tax introduction will stabilize the financial market. The results obtained show that in the case of risk involvement into the system the hypothesis can be fulfilled only partially.