Multiple choice minority game with different publicly known histories

Chau, H. F.; Chow, F. K.; Ho, Kim Hin David; Man, W. C.

doi:10.1088/1367-2630/7/1/206

Cited by 4 publications

(3 citation statements)

References 34 publications

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“…That is, they have about the same level of agent cooperation. In addition, the standard MG [17,18,19], HMG FSS [11] and HMG MRSS all exhibit the same period 2 M+1 dynamics in the minority choice time series whenever α < ∼ α MG 3, we find that the values of σ 2 /N are about the same for both HMG FSS and HMG MRSS in this regime. Moreover, the standard MG [13], HMG FSS [11] and HMG MRSS all show no periodic dynamics.…”

Section: • I mentioning

confidence: 57%

Playing the hypothesis testing minority game in the maximal reduced strategy space

Chau

Chan

Chow

2008

Physica A: Statistical Mechanics and its Applications

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Hypothesis Testing Minority Game (HMG) is a variant of the standard Minority Game (MG) that models the inertial behavior of agents in the market. In the earlier study of our group, we find that agents cooperate better in HMG than in the standard MG when strategies are picked from the full strategy space. Here we continue to study the behavior of HMG when strategies are chosen from the maximal reduced strategy space. Surprisingly, we find that, unlike the standard MG, the level of cooperation in HMG depends strongly on the strategy space used. In addition, a novel intermittency dynamics is also observed in the minority choice time series in a certain parameter range in which the orderly phases are characterized by a variety of periodic dynamics. Remarkably, all these findings can be explained by the crowd-anticrowd theory.

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Section: • I mentioning

confidence: 57%

Playing the hypothesis testing minority game in the maximal reduced strategy space

Chau

Chan

Chow

2008

Physica A: Statistical Mechanics and its Applications

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“…For a heterogeneous population, whether the individuals with heterogeneous investment strategies or heterogeneous price expectations, they would show different buying and selling behaviors. An equilibrium is easy to be reached in the stock market [11][12][13][14][15][16][17]. Understanding the effects of homogeneous and heterogeneous populations on the price movement is quite important for the risk management and the construction of an efficient market [18][19][20][21][22][23][24].…”

Section: Introductionmentioning

confidence: 99%

Evolutionary dynamics in financial markets with heterogeneities in investment strategies and reference points

Zhong

Ren

et al. 2023

PLoS ONE

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In nature and human societies, the effects of homogeneous and heterogeneous characteristics on the evolution of collective behaviors are quite different from each other. By incorporating pair pattern strategies and reference point strategies into an agent-based model, we have investigated the effects of homogeneous and heterogeneous investment strategies and reference points on price movement. In the market flooded with the investors with homogeneous investment strategies or homogeneous reference points, large price fluctuations occur. In the market flooded with the investors with heterogeneous investment strategies or heterogeneous reference points, moderate price fluctuations occur. The coexistence of different kinds of investment strategies can not only refrain from the occurrence of large price fluctuations but also the occurrence of no-trading states. The present model reveals that the coexistence of heterogeneous populations, whether they are the individuals with heterogeneous investment strategies or heterogeneous reference points of stock prices, is an important factor for the stability of the stock market.

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“…For a homogeneous population, the same beliefs and strategies may lead to the same buyingselling actions, which may further lead to the occurrence of herding effect and crowding effect [3,4]. For a heterogeneous population, the different beliefs and strategies may lead to the different buying-selling actions, which may further lead to the slow changes of the prices [5,6,7,8,9,10,11]. Understanding the effects of homogeneous and heterogeneous population on the evolution of stock market is quite important for the risk management and the construction of an efficient market [12,13,14,15,16,17,18].…”

Section: Introductionmentioning

confidence: 99%

Evolutionary dynamics in financial markets with heterogeneities in strategies and risk tolerance

Xu,

Zhong,

Ren

et al. 2020

Preprint

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In nature and human societies, the effects of homogeneous and heterogeneous characteristics on the evolution of collective behaviors are quite different from each other. It is of great importance to understand the underlying mechanisms of the occurrence of such differences. By incorporating pair pattern strategies and reference point strategies into an agent-based model, we have investigated the coupled effects of heterogeneous investment strategies and heterogeneous risk tolerance on price fluctuations. In the market flooded with the investors with homogeneous investment strategies or homogeneous risk tolerance, large price fluctuations are easy to occur. In the market flooded with the investors with heterogeneous investment strategies or heterogeneous risk tolerance, the price fluctuations are suppressed. For a heterogeneous population, the coexistence of investors with pair pattern strategies and reference point strategies causes the price to have a slow fluctuation around a typical equilibrium point and both a large price fluctuation and a no-trading state are avoided, in which the pair pattern strategies push the system far away from the equilibrium while the reference point strategies pull the system

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Multiple choice minority game with different publicly known histories

Cited by 4 publications

References 34 publications

Playing the hypothesis testing minority game in the maximal reduced strategy space

Playing the hypothesis testing minority game in the maximal reduced strategy space

Evolutionary dynamics in financial markets with heterogeneities in investment strategies and reference points

Evolutionary dynamics in financial markets with heterogeneities in strategies and risk tolerance

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