Playing minority game

Płatkowski, Tadeusz; Ramsza, Michał

doi:10.1016/s0378-4371(03)00048-7

Cited by 17 publications

(13 citation statements)

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“…Thus, at these levels players appear to be ignoring all aspects of the information presented by the market. This behaviour in the more difficult markets reflects the observations of other authors on humans playing the Minority Game in groups [22,23], but in our case the tendency to repetition is even stronger.A final point of view is provided by examining the human's market impact, by considering how volatility and the average gain per turn of computer-controlled agents change as the human enters and leaves. The former can be measured by the normalized variance of the market fluctuations:…”

supporting

confidence: 91%

“…A rich market dynamics emerges, whose properties depend on only a few simple parameters [19][20][21]. These results have recently led some authors to return to more traditional experiments, playing the MG with small groups of humans [22,23].Our approach here has instead been to make use of the understanding of the theoretical game, by having individual humans play against computer-controlled "MG agents". We can thus fine-tune the market situation the player encounters, and provide a variety of controlled environments in which to investigate human behaviour.…”

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confidence: 99%

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The Interactive Minority Game: a Web-based investigation of human market interactions

Laureti

Ruch

Wakeling

et al. 2004

Physica A: Statistical Mechanics and its Applications

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The unprecedented access offered by the World Wide Web brings with it the potential to gather huge amounts of data on human activities. Here we exploit this by using a toy model of financial markets, the Minority Game (MG), to investigate human speculative trading behaviour and information capacity. Hundreds of individuals have played a total of tens of thousands of game turns against computer-controlled agents in the Web-based Interactive Minority Game. The analytical understanding of the MG permits fine-tuning of the market situations encountered, allowing for investigation of human behaviour in a variety of controlled environments. In particular, our results indicate a transition in players' decision-making, as the markets become more difficult, between deductive behaviour making use of short-term trends in the market, and highly repetitive behaviour that ignores entirely the market history, yet outperforms random decision-making. 02.50.Le; 89.65.Gh; 89.70.+c Keywords: Decision theory and game theory; Economics and financial markets; Information theory; PACS: Internet experimentsExperimental games and their theoretical offspring have been a fruitful research direction for various disciplines, particularly psychology [1-6] and economics [7][8][9][10][11], but elsewhere as well [12][13][14]. The advantage of this approach is that the simplified game environment allows for controlled investigation of human behaviour while still potentially maintaining the essential features of real-world situations. A notable example in recent years has been the so-called "market entry" games [9,11], where traders must decide whether or not to join a market based on knowledge of its capacity and of their competitors' past actions. These games have generated much interest as examples of situations where the insight provided by classical economic theory is limited, and an experimental approach was thought essential [11,15,16 By coincidence, a theoretical approach has been developed by the statistical physics community for an independently created game that has many similarities to the market entry class: the Minority Game (MG) [17]. Economic agents are endowed with simple strategies and learn inductively, as suggested by Arthur [18]. A rich market dynamics emerges, whose properties depend on only a few simple parameters [19][20][21]. These results have recently led some authors to return to more traditional experiments, playing the MG with small groups of humans [22,23].Our approach here has instead been to make use of the understanding of the theoretical game, by having individual humans play against computer-controlled "MG agents". We can thus fine-tune the market situation the player encounters, and provide a variety of controlled environments in which to investigate human behaviour. Because we only ever engage individual players, we have been able to make use of the immense access provided by the World Wide Web 1 , presenting the game via an online interface. Since being launched a year ago [25], hundreds of players...

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confidence: 91%

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confidence: 99%

The Interactive Minority Game: a Web-based investigation of human market interactions

Laureti

Ruch

Wakeling

et al. 2004

Physica A: Statistical Mechanics and its Applications

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Section: Minority Game Modelmentioning

confidence: 99%

“…A minority game (MG) is a dynamical system of many interacting degrees of freedom, where many players may reach a collective solution to a specific problem under adaption of everyone's expectation about the future. 39 Furthermore, each player has a given set of decision-making strategies (S) that help him to select future actions. At the start of UNs transmission, each UN randomly picks (S) strategies from a strategy pool, and there are no prior best strategies that help the UNs in their decision-making through the game.…”

Section: Minority Game Modelmentioning

confidence: 99%

Distributed Fog‐to‐Cloud computing system: A minority game approach

AbdElhalim

Obayya

Kishk

2019

Concurrency and Computation

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Summary With the ever‐increasing popularity of resource‐intensive mobile applications, today, Fog‐to‐Cloud (F2C) computing system becomes a prominent technology for the next generation wireless networks. Despite the benefits of fog computing regarding localized storage and processing, it suffers from restricted power allowance and computational capability of the edge nodes. User nodes also may suffer from extensive delay, especially in offloading periods. Therefore, it is essential to develop a distributed mechanism for users' computation in offloading periods. According to this mechanism, not only the computational servers are exploited at their best capacity but also the users' latency constraints fulfilled. Consequently, this paper develops automated distributed fog computing for computational offloading using the theory of minority game. The proposed scheme achieves user satisfaction latency deadline as well as Quality‐of‐Experience. Moreover, it guarantees an adaptive equilibrium level of F2C computing system, which is suitable for heterogeneous wireless networks.

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“…Results on a number of recent laboratory experiments on the minority game may help in understanding which strategies would actually be played by humans. Platkowski and Ramsza (2003) and Devetag (2003, 2007) performed experiments with the minority game and find that, although aggregate choices are volatile, (allocative) efficiency is higher than in the symmetric mixed 9 In some contributions an agent's strategies are not drawn independently from the set of all strategies. Challet et al (2000b), for example, assume that an agent's second strategy is always chosen such that it is exactly opposite to its first strategy.…”

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confidence: 99%

Strategies and evolution in the minority game: A multi-round strategy experiment

Linde

Sonnemans

Tuinstra

2014

Games and Economic Behavior

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: Minority games are a stylized description of strategic situations with both coordination and competition. These games are widely studied using either simulations or laboratory experiments. Simulations can show the dynamics of aggregate behavior, but the results of such simulations depend on the type of strategies used. So far experiments provided little guidance on the type of strategies people use because the set of possible strategies is very large. We therefore use a multi-round strategy method experiment to directly elicit people's strategies. Between rounds participants can adjust their strategy and test the performance of (possible) new strategies against strategies from the previous round. Strategies gathered in the experiment are subjected to an evolutionary competition. The strategies people use are very heterogeneous although aggregate outcomes resemble the symmetric Nash equilibrium. The strategies that survive evolutionary competition achieve much higher levels of coordination. Terms of use: Documents in

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Playing minority game

Cited by 17 publications

References 10 publications

The Interactive Minority Game: a Web-based investigation of human market interactions

The Interactive Minority Game: a Web-based investigation of human market interactions

Distributed Fog‐to‐Cloud computing system: A minority game approach

Strategies and evolution in the minority game: A multi-round strategy experiment

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