The crowd–anticrowd theory is applied to explain the features observed in a class of the minority game using different payoff functions. Simulations results using both the full strategy space and a reduced strategy space reveal that the standard deviation (SD) in the number of agents making a...

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. Using a Markov-Chain description, we study the many possible...

We present numerical and analytic results for a new version of the minority game (MG) in which strategy performance is recorded over a finite time horizon. The dynamics of this time horizon minority game (THMG) exhibit many distinct features from the MG and depend strongly on whether the...

The discussion outlines the ways in which crisis emasculates traditional methodology as used in economics by making the core assumptions of this type of analysis (temporarily) untenable. Our critique of traditional methodology is limited to its inability to address this critical subset of social...

This paper presents an adaptive learning model for market-making under the reinforcement learn-ing framework. Reinforcement learning is a learning technique in which agents aim to maximize the long-term accumulated rewards. No knowledge of the market environment, such as the order arrival or...

The Minority Game is a simple yet highly non-trivial agent-based model for a complex adaptive system. Here, we provide an explanation of the game's fluctuations which is both intuitive and quantitative, and which applies over the entire parameter range of interest. The physical idea behind our...

We present detailed numerical results for a modified form of the so-called Minority Game, which provides a simplified model of a competitive market. Each agent has a limited set of strategies, and competes to be in a minority. An evolutionary rule for strategy modification is included to mimic...