Representation Homogeneity and Systemic Instability in AI-Dominated Financial Markets: A Structural Approach

arXiv:2604.22818v1 Announce Type: cross Abstract: This paper investigates how similarity in the informational representation of market states among Artificial Intelligence (AI) trading agents can generate systemic instability in financial markets. We construct a structural multi-agent market model calibrated using high-frequency microstructural moments. AI agents are modeled through a two-layer decision architecture consisting of a nonlinear representation layer and an adaptive linear readout la