The Interactive Minority Game: a Web based investigation of human market interactions
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.
|Date of creation:||23 Feb 2004|
|Date of revision:|
|Note:||Type of Document - pdf; prepared on WinXP; pages: 13; figures: 5|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
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