A tractable evolutionary model for the Minority Game with asymmetric payoffs
AbstractWe set up a simple behavioral model for a large population of agents who are repeatedly playing the Minority Game and whose interaction is modeled by means of the so-called replicator dynamics. This allows us to specify the dynamics of the aggregate variables, the number of agents choosing each side, in terms of a low-dimensional dynamical system that gives qualitatively the same results of the existing computational approaches. As an extension we introduce asymmetric payoffs, that is, we analyze the case where the minority and majority payoffs are side dependent. In this case the fluctuations out of the equilibrium are qualitatively different. In particular, contrary to the previous case, they are associated with a difference in the average payoff gained by each side. Furthermore, a parameter region exists where the dynamics does not converge to any isolated periodic attractor.
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Bibliographic InfoPaper provided by Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance in its series CeNDEF Working Papers with number 04-17.
Date of creation: 2004
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Other versions of this item:
- Dindo, Pietro, 2005. "A tractable evolutionary model for the Minority Game with asymmetric payoffs," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 355(1), pages 110-118.
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- Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, January.
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- Challet, D. & Zhang, Y.-C., 1997. "Emergence of cooperation and organization in an evolutionary game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 246(3), pages 407-418.
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