ISSN:
1434-6036
Keywords:
PACS. 87.23.Ge Dynamics of social systems – 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
Source:
Springer Online Journal Archives 1860-2000
Topics:
Physics
Notes:
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.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/s100510170237
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