The minority game with different payoff functions: crowd–anticrowd theory

Kuen Lee, P.M. Hui and N.F. Johnson

Physica A: Statistical Mechanics and its Applications, 2003, vol. 321, issue 1, 309-317

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.

Keywords: Complex adaptive systems; Econophysics; Agent-based models (search for similar items in EconPapers)
Date: 2003
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378437102017867
Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:321:y:2003:i:1:p:309-317

DOI: 10.1016/S0378-4371(02)01786-7

Access Statistics for this article

Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

More articles in Physica A: Statistical Mechanics and its Applications from Elsevier
Bibliographic data for series maintained by Catherine Liu ().