Minority game with local interactions due to the presence of herding behavior

DOI10.1016/J.PHYSLETA.2006.02.060zbMATH Open1292.91040arXivphysics/0512087OpenAlexW2073994315MaRDI QIDQ2267239FDOQ2267239

Reinaldo Soares de Camargo, Daniel Oliveira Cajueiro

Publication date: 1 March 2010

Published in: Physics Letters. A (Search for Journal in Brave)

Abstract: In this paper, we introduce a framework to study local interactions due to the presence of herding behavior in a minority game. The idea behind this approach is to consider that some of the agents who play the game believe that some of their neighbors are more informed than themselves. Thus, in this way, these agents imitate their most informed neighbors. The notion of neighborhood here is given by a regular network, a random network or a small world network. We show that under herding behavior the cooperation between the agents is less efficient than that one which arises in the standard minority game. On the other hand, depending on the topology of the network, we show that that the well known curve volatility versus memory, which caracterizes the minority game, is a monotone decreasing curve.

Full work available at URL: https://arxiv.org/abs/physics/0512087

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zbMATH Keywords

phase transitioneconophysicscomplex networksherding behaviorminority games

Mathematics Subject Classification ID

Applications of game theory (91A80) Applications of statistical and quantum mechanics to economics (econophysics) (91B80) Heterogeneous agent models (91B69)

Cites Work

• Emergence of Scaling in Random Networks
• Collective dynamics of ‘small-world’ networks
• Generating functional analysis of minority games with real market histories
• Title not available (Why is that?)
• Self-segregation and enhanced cooperation in an evolving population through local information transmission
• The local minority game
• Minority games and stylized facts

Cited In (8)

• The influence of network topology on local minority game behavior
• Hierarchically organized minority games
• Jump diffusion models and the evolution of financial prices
• Network evolution based on minority game with herding behavior
• Measuring the flow of information among cities using the diffusion power
• The local minority game
• Crowd-anticrowd theory of the minority game
• Minority game with SK interactions

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