% ============================================================================ % UQO Working Paper No. 27 — The Invisible Hand of Machines % ============================================================================ \documentclass[12pt,letterpaper]{article} \usepackage[utf8]{inputenc} \usepackage[T1]{fontenc} \usepackage[english]{babel} \usepackage[letterpaper,top=1in,bottom=1in,left=1in,right=1in]{geometry} \usepackage{mathptmx} \usepackage{microtype} \usepackage{setspace} \onehalfspacing \usepackage{amsmath,amssymb,amsthm} \usepackage{booktabs,tabularx,multirow,threeparttable,array,longtable} \usepackage{siunitx} \sisetup{input-symbols = {()}, table-format = -1.3, parse-numbers = false} \usepackage{graphicx,subcaption,float,rotating} \usepackage[dvipsnames]{xcolor} \usepackage[authoryear,round,semicolon]{natbib} \bibliographystyle{aer} \usepackage[font=small,labelfont=bf,labelsep=period,justification=justified,singlelinecheck=false]{caption} \usepackage{fancyhdr} \pagestyle{fancy}\fancyhf{}\renewcommand{\headrulewidth}{0pt}\fancyfoot[C]{\thepage} \usepackage{titlesec} \titleformat{\section}{\large\bfseries}{\thesection.}{0.5em}{} \titleformat{\subsection}{\normalsize\bfseries}{\thesubsection.}{0.5em}{} \titleformat{\subsubsection}{\normalsize\itshape}{\thesubsubsection.}{0.5em}{} \usepackage[toc,page]{appendix} \usepackage{enumitem} \setlist{nosep,leftmargin=*} \usepackage{listings} \lstset{basicstyle=\ttfamily\footnotesize,breaklines=true,columns=fullflexible,frame=single,framerule=0.3pt,xleftmargin=0.5em} \usepackage{algorithm,algpseudocode} \usepackage{hyperref} \hypersetup{colorlinks=true,linkcolor=NavyBlue,citecolor=NavyBlue,urlcolor=NavyBlue,breaklinks=true, pdftitle={The Invisible Hand of Machines: Price Discovery in Markets Populated by LLM Agents}, pdfauthor={Simon-Pierre Boucher}} \theoremstyle{plain} \newtheorem{proposition}{Proposition} \newtheorem{lemma}{Lemma} \newtheorem{corollary}{Corollary} \theoremstyle{definition} \newtheorem{assumption}{Assumption} \newtheorem{definition}{Definition} \theoremstyle{remark} \newtheorem{remark}{Remark} \newtheorem{hypothesis}{Hypothesis} \newcommand{\E}{\mathbb{E}} \newcommand{\Var}{\operatorname{Var}} \newcommand{\Cov}{\operatorname{Cov}} \newcommand{\Corr}{\operatorname{Corr}} \newcommand{\code}[1]{\texttt{#1}} % ============================================================================ % METADATA % ============================================================================ \newcommand{\WPnumber}{27} \newcommand{\WPtitle}{The Invisible Hand of Machines} \newcommand{\WPsubtitle}{Price Discovery in Markets Populated by LLM Agents} \newcommand{\WPdate}{October 2026} \newcommand{\WPversion}{1.0} \newcommand{\WPabstract}{\input{sections/abstract}} \newcommand{\WPkeywords}{price discovery, large language models, agent-based markets, limit order book, herding, liquidity spirals, randomized simulation experiments} \newcommand{\WPjel}{G14, G12, D53, C63, C15, D83} \newcommand{\WPauthor}{Simon-Pierre Boucher} \newcommand{\WPaffiliation}{Département des sciences administratives\\Université du Québec en Outaouais} \newcommand{\WPemail}{simon-pierre.boucher@uqo.ca} \newcommand{\WPaddress}{Gatineau -- Pavillon Alexandre-Taché\\283, boulevard Alexandre-Taché\\Gatineau, Québec, Canada J9A 1L8} \begin{document} \input{sections/titlepage} \input{sections/introduction} \input{sections/literature} \input{sections/model} \input{sections/theory} \input{sections/identification} \input{sections/implementation} \input{sections/results} \input{sections/mechanisms} \input{sections/robustness} \input{sections/limitations} \input{sections/conclusion} \newpage \bibliography{references} \newpage \begin{appendices} \input{appendices/proofs} \input{appendices/prompts} \input{appendices/pseudocode} \input{appendices/hyperparameters} \input{appendices/reproducibility} \end{appendices} \end{document}