Agent Based Modelling of Coevolution of Trust between Client and Wealth Managers

Agent based modelling is used to study the pattern of interaction between clients and wealth management advisors (WMAs). A simulated investment market is used by WMAs to invest money on behalf of clients with differing investment goals. Client and WMA strategies coevolve, each maximising their own wealth. Simulations show abrupt transitions where trust between clients and WMAs rises dramatically and in most cases remains stable thereafter.