LLM agents reveal how human bias shapes path-dependent market dynamics

In stock markets, prices often respond to specific anchors such as past peaks adjust only gradually to supply–demand imbalances, rather than reflecting fundamentals immediately. These phenomena suggest path dependence, where investor decisions are influenced not only by current market conditions but also by the trajectory of prices leading up to the present. One plausible driver of such path dependence is human behavioral biases, which cause aggregate market outcomes to deviate systematically fr