Title: Simulation of trust in client-wealth management adviser relationships

Authors: Terry Bossomaier, Russell K. Standish, Michael Harre

Addresses: CRiCS Centre for Research in Complex Systems, Charles Sturt University, Panorama Avenue, Bathurst, NSW, Australia. ' School of Mathematics and Statistics, University of New South Wales, Sydney, 2052 NSW, Australia. ' CRiCS Centre for Research in Complex Systems, Charles Sturt University, Panorama Avenue, Bathurst, NSW, Australia

Abstract: This paper describes the components of a two-phase model for simulating trust amongst clients and their Wealth Management Advisers (WMAs). In phase one, an artificial life model was used to assess the dynamics of trust. In phase two, the model is extended to utilise real data from a corporate database of client information. The Alife model highlighted the need for information not captured directly, requiring sophisticated inference techniques. Fuzzy logic is used to describe client behaviour with rules found through evolutionary optimisation. Analysis of mutual information between time series of clients| investments is used to determine links between clients.

Keywords: agent-based modelling; trust simulation; agent-based systems; trust dynamics; financial advisers; fuzzy logic; mutual information; social networking; wealth management; artificial life models; investment; multi-agent systems.

DOI: 10.1504/IJSPM.2010.032656

International Journal of Simulation and Process Modelling, 2010 Vol.6 No.1, pp.40 - 49

Available online: 11 Apr 2010 *

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