We present a quantitative theory, based on crowd effects, for the market volatility in a Minority Game played by a mixed population. Below a critical concentration of generalized strategy players, we find that the volatility in the crowded regime remains above the random coin-toss value regardless of the 'temperature' controlling strategy use. Our theory yields good agreement with numerical simulations.
ASJC Scopus subject areas
- Statistical and Nonlinear Physics
- Mathematical Physics
- Physics and Astronomy(all)