Generalized strategies in the Minority Game

Details Generalized strategies in the Minority Game Generalized strategies in the Minority Game

2000-04-05

arxiv.org/abs/cond-mat/0004063v2

Physics

Condensed Matter

Revised manuscript: a few minor typos corrected. Results unaffected

Scientific paper

10.1103/PhysRevE.63.017102

We show analytically how the fluctuations (i.e. standard deviation) in the Minority Game (MG) can be made to decrease below the random coin-toss limit if the agents use more general behavioral strategies. This suppression of the standard deviation results from a cancellation between the actions of a crowd, in which agents act collectively and make the same decision, and an anticrowd in which agents act collectively by making the opposite decision to the crowd.

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