A research project lead by Debrah Meloso, TBS researcher and Finance professor, has been awarded with a prestigious grant from the Fondation Banque de France. The research will focus on the role of composite human robots in financial markets.
Algorithms are ubiquitous in financial markets. Initially their rise was driven by speed – high-frequency traders (HFT) – but recently, smart algorithms called `quants’ are taking over. Quants can be very independent: the human deploying them relinquishes learning, decision power, and perhaps even the knowledge of how the quant functions. How much control are humans willing to relinquish – what quants will they deploy? Are markets inhabited by quants an easier prey to predator robots and, hence, more fragile? These, and other questions about COHORT (composite human robots) in financial markets are at the center of the research project, which will develop theory based on findings from “financial laboratory experiments”.
Since 1997, the Fondation Banque de France has granted financing for up to four research projects per year. Over the years the grant has gained reputation, especially among theorists, leading to applications from some of the best finance research institutions world-wide. Nowadays the format is standard: up to four research projects per year obtain a maximum of 30.000 euros each.
The international research team is composed by:
- Elena Asparouhova, University of Utah
- Debrah Meloso, TBS
- Christine Parlour, University of California Berkeley
- Wenhao Yang, University of Southern California
The grant will be used by the research team to fund financial laboratory experiments; some of which will be run in Toulouse. It will be a great opportunity to involve TBS students and the business school entire community.
If you wish to have more information on this research project, please contact Debrah Meloso: