### Abstract

The crowd-anticrowd theory is applied to explain the features observed in a class of the minority game using different payoff functions. Simulations results using both the full strategy space and a reduced strategy space reveal that the standard deviation (SD) in the number of agents making a particular decision over time as a function of the agents' memory size m does not depend on the explicit form of the payoff function. The robustness of the results is explained in terms of the general features in strategy selection among the agents in different regimes of m. While different payoff functions may affect the popularity of a particular strategy, the strategy selection is found to be insensitive to the choice of payoff functions. The crowd-anticrowd cancellation effect leads to a minimum in SD at an intermediate value of m separating the small m regime characterized by crowd behavior and the large m regime characterized by random coin-toss behavior of the agents.

Original language | English (US) |
---|---|

Pages (from-to) | 309-317 |

Number of pages | 9 |

Journal | Physica A: Statistical Mechanics and its Applications |

Volume | 321 |

Issue number | 1-2 |

DOIs | |

State | Published - Apr 1 2003 |

Externally published | Yes |

### Fingerprint

### Keywords

- Agent-based models
- Complex adaptive systems
- Econophysics

### ASJC Scopus subject areas

- Mathematical Physics
- Statistical and Nonlinear Physics

### Cite this

*Physica A: Statistical Mechanics and its Applications*,

*321*(1-2), 309-317. https://doi.org/10.1016/S0378-4371(02)01786-7

**The minority game with different payoff functions : Crowd-anticrowd theory.** / Lee, Kuen; Hui, P. M.; Johnson, Neil F.

Research output: Contribution to journal › Article

*Physica A: Statistical Mechanics and its Applications*, vol. 321, no. 1-2, pp. 309-317. https://doi.org/10.1016/S0378-4371(02)01786-7

}

TY - JOUR

T1 - The minority game with different payoff functions

T2 - Crowd-anticrowd theory

AU - Lee, Kuen

AU - Hui, P. M.

AU - Johnson, Neil F

PY - 2003/4/1

Y1 - 2003/4/1

N2 - The crowd-anticrowd theory is applied to explain the features observed in a class of the minority game using different payoff functions. Simulations results using both the full strategy space and a reduced strategy space reveal that the standard deviation (SD) in the number of agents making a particular decision over time as a function of the agents' memory size m does not depend on the explicit form of the payoff function. The robustness of the results is explained in terms of the general features in strategy selection among the agents in different regimes of m. While different payoff functions may affect the popularity of a particular strategy, the strategy selection is found to be insensitive to the choice of payoff functions. The crowd-anticrowd cancellation effect leads to a minimum in SD at an intermediate value of m separating the small m regime characterized by crowd behavior and the large m regime characterized by random coin-toss behavior of the agents.

AB - The crowd-anticrowd theory is applied to explain the features observed in a class of the minority game using different payoff functions. Simulations results using both the full strategy space and a reduced strategy space reveal that the standard deviation (SD) in the number of agents making a particular decision over time as a function of the agents' memory size m does not depend on the explicit form of the payoff function. The robustness of the results is explained in terms of the general features in strategy selection among the agents in different regimes of m. While different payoff functions may affect the popularity of a particular strategy, the strategy selection is found to be insensitive to the choice of payoff functions. The crowd-anticrowd cancellation effect leads to a minimum in SD at an intermediate value of m separating the small m regime characterized by crowd behavior and the large m regime characterized by random coin-toss behavior of the agents.

KW - Agent-based models

KW - Complex adaptive systems

KW - Econophysics

UR - http://www.scopus.com/inward/record.url?scp=0037381216&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0037381216&partnerID=8YFLogxK

U2 - 10.1016/S0378-4371(02)01786-7

DO - 10.1016/S0378-4371(02)01786-7

M3 - Article

AN - SCOPUS:0037381216

VL - 321

SP - 309

EP - 317

JO - Physica A: Statistical Mechanics and its Applications

JF - Physica A: Statistical Mechanics and its Applications

SN - 0378-4371

IS - 1-2

ER -