An investigation of crash avoidance in a complex system

DOI10.1016/S0378-4371(02)01381-XzbMATH Open1001.91009arXivcond-mat/0207588OpenAlexW3102439029MaRDI QIDQ1847484FDOQ1847484

Authors: Michael L. Hart, David Lamper, Neil F. Johnson 

Publication date: 26 November 2002

Published in: Physica A (Search for Journal in Brave)

Abstract: Complex systems can exhibit unexpected large changes, e.g. a crash in a financial market. We examine the large endogenous changes arising within a non-trivial generalization of the Minority Game: the Grand Canonical Minority Game (GCMG). Using a Markov Chain description, we study the many possible paths the system may take. This 'many-worlds' view not only allows us to predict the start and end of a crash in this system, but also to investigate how such a crash may be avoided. We find that the system can be 'immunized' against large changes: by inducing small changes today, much larger changes in the future can be prevented.

Full work available at URL: https://arxiv.org/abs/cond-mat/0207588

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zbMATH Keywords

immunizationgrand canonical minorit gameMarkov-chain description

Mathematics Subject Classification ID

Other game-theoretic models (91A40)

Cites Work

• Elements for a theory of financial risks
• Title not available (Why is that?)
• Dynamics of the time horizon minority game
• Mixed population minority game with generalized strategies

Cited In (3)

• Minority games with finite score memory
• System crash as dynamics of complex networks
• Financial crises and interacting heterogeneous agents

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