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) |
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Pages (from-to) | 547-550 |
Number of pages | 4 |
Journal | European Physical Journal B |
Volume | 20 |
Issue number | 4 |
DOIs | |
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