Crowd-anticrowd theory of multi-agent market games

M. Hart; P. Jefferies; P. M. Hui; N. F. Johnson

doi:10.1007/s100510170237

Crowd-anticrowd theory of multi-agent market games

M. Hart, P. Jefferies, P. M. Hui, N. F. Johnson

Physics

Research output: Contribution to journal › Article › peer-review

52 Scopus citations

Abstract

We present a dynamical theory of a multi-agent market game, the so-called Minority Game (MG), based on crowds and anticrowds. The time-averaged version of the dynamical equations provides a quantitatively accurate, yet intuitively simple, explanation for the variation of the standard deviation ('volatility') in MG-like games. We demonstrate this for the basic MG, and the MG with stochastic strategies. The time-dependent equations themselves reproduce the essential dynamics of the MG.

Original language	English (US)
Pages (from-to)	547-550
Number of pages	4
Journal	European Physical Journal B
Volume	20
Issue number	4
DOIs	https://doi.org/10.1007/s100510170237
State	Published - Apr 2 2001

Keywords

01.75.+m Science and societ
02.50.Le Decision theory and game theory
05.40.-a Fluctuation phenomena, random processes, noise, and Brownian motion
87.23.Ge Dynamics of social systems

ASJC Scopus subject areas

Electronic, Optical and Magnetic Materials
Condensed Matter Physics

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AU - Jefferies, P.

AU - Hui, P. M.

AU - Johnson, N. F.

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KW - 01.75.+m Science and societ

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