Crowd-anticrowd theory of multi-agent market games

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

Research output: Contribution to journalArticle

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 languageEnglish (US)
Pages (from-to)547-550
Number of pages4
JournalEuropean Physical Journal B
Volume20
Issue number4
DOIs
StatePublished - Apr 2 2001
Externally publishedYes

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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

Cite this

Hart, M., Jefferies, P., Hui, P. M., & Johnson, N. F. (2001). Crowd-anticrowd theory of multi-agent market games. European Physical Journal B, 20(4), 547-550. https://doi.org/10.1007/s100510170237