Crowd-Anticrowd Theory of Multi-Agent Market Games
Condensed Matter
2009-10-31 v1 Adaptation and Self-Organizing Systems
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.
Keywords
Cite
@article{arxiv.cond-mat/0008385,
title = {Crowd-Anticrowd Theory of Multi-Agent Market Games},
author = {M. Hart and P. Jefferies and P. M. Hui and N. F. Johnson},
journal= {arXiv preprint arXiv:cond-mat/0008385},
year = {2009}
}
Comments
Presented at APFA2 (Liege) July 2000. Proceedings: Eur.Phys.J. B [email protected]