Can learning affect the effectiveness of price limits?

This paper examines how different learning methods may affect the effectiveness of price limits. We consider three different learning styles: zero-intelligence (ZI), zero-intelligence-plus (ZIP), and genetic programming learning. Our results indicate that the different learning behavior indeed gives rise to different impacts on the market. Therefore, policy makers have to take into account traders' learning styles when they plan to impose financial regulations on the market so as to achieve the effects they expected.