A Strategic Graph Rewriting Model of Rational Negligence in Financial Markets

Abstract

We propose to use strategic port graph rewriting as a visual modelling tool to analyse financial market processes. We illustrate the approach by specifying a basic "rational negligence" model in which investors may choose to trade securities without performing independent evaluations of the underlying assets. We show that our model is correct with respect to the equational model and can be used to simulate simple market behaviours. The model has been implemented within PORGY, a graph-based specification and simulation environment.

CoSEP: A compound spring embedder layout algorithm with support for ports

“…Toward this end, we present a new layout algorithm CoSEP, which builds on a previous compound spring embedder algorithm named CoSE, 7 and adds support for port constraints on edges while respecting nonuniform node dimensions and compound structures in straight-line drawings such as languages used to represent biological, financial transaction, and visual scripting networks. 5,8,9 Background A graph or a network is a representation of a discrete set of objects, called nodes, where object pairs are joined by links, called edges. An edge is said to be incident on its source and target nodes.…”

“…Toward this end, we present a new layout algorithm CoSEP, which builds on a previous compound spring embedder algorithm named CoSE, 7 and adds support for port constraints on edges while respecting non-uniform node dimensions and compound structures in straight-line drawings such as languages used to represent biological, financial transaction, and visual scripting networks. 5,8,9…”

Model checking strategy-controlled systems in rewriting logic

“…Unlike the strategies usually considered for the λ -calculus and abstract rewriting, these strategies are syntactically represented as programs and the next steps are not only dependent on the last state but may depend on the whole history of the derivation. These languages have been applied to several real problems, among others [29,26,28,2,42].…”