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A Neural Networks approach to Minority Game

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Author Info
Luca Grilli ()
Angelo Sfrecola

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Abstract

The Minority Game comes from the so-called "El Farol bar" problem by W.B. Arthur. The underlying idea is competition for limited resources and it can be applied to different fields such as: stock markets, alternative roads between two locations and in general problems in which the players in the "minority" win. Players in this game use a window of the global history for making their decisions, we propose a neural networks approach with learning algorithms in order to determine players strategies. We use three different algorithms to generate the sequence of minority decisions and consider the prediction power of the neural network associated to that algorithm. The case of sequences generated randomly is also studied.

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File URL: http://dx.doi.org/10.1007/s00521-007-0163-1
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Publisher Info
Paper provided by Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia in its series Quaderni DSEMS with number 13-2005.

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Date of creation: Jun 2005
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Publication status: published in Neural Computing and Applications, Springer, online first..
Handle: RePEc:ufg:qdsems:13-2005

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Postal: Largo Papa Giovanni Paolo II, 1 -71100- Foggia (I)
Phone: +390881753730
Fax: +390881775616
Web page: http://www.dsems.unifg.it
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Related research
Keywords: Minority Game; Learning Algorithms; Neural Networks.;

Find related papers by JEL classification:
C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Arthur, W Brian, 1994. "Inductive Reasoning and Bounded Rationality," American Economic Review, American Economic Association, vol. 84(2), pages 406-11, May. [Downloadable!] (restricted)
  2. Massimo Bernaschi & Luca Grilli & Davide Vergni, 2002. "Statistical analysis of fixed income market," Quaderni DSEMS lg_physa_2002, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia. [Downloadable!]
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This page was last updated on 2009-12-12.


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