IDEAS home Printed from https://ideas.repec.org/a/spr/eurphb/v47y2005i4p587-593.html
   My bibliography  Save this article

Global optimization of minority game by intelligent agents

Author

Listed:
  • Yan-Bo Xie
  • Bing-Hong Wang
  • Chin-Kun Hu
  • Tao Zhou

Abstract

We propose a new model of minority game with intelligent agents who use trail and error method to make a choice such that the standard deviation σ 2 and the total loss in this model reach the theoretical minimum values in the long time limit and the global optimization of the system is reached. This suggests that the economic systems can self-organize into a highly optimized state by agents who make decisions based on inductive thinking, limited knowledge, and capabilities. When other kinds of agents are also present, the simulation results and analytic calculations show that the intelligent agent can gain profits from producers and are much more competent than the noise traders and conventional agents in original minority games proposed by Challet and Zhang. Copyright EDP Sciences/Società Italiana di Fisica/Springer-Verlag 2005

Suggested Citation

  • Yan-Bo Xie & Bing-Hong Wang & Chin-Kun Hu & Tao Zhou, 2005. "Global optimization of minority game by intelligent agents," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 47(4), pages 587-593, October.
    • Handle: RePEc:spr:eurphb:v:47:y:2005:i:4:p:587-593
    DOI: 10.1140/epjb/e2005-00350-9
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1140/epjb/e2005-00350-9
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1140/epjb/e2005-00350-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wen-Juan Xu & Li-Xin Zhong, 2022. "Market impact shapes competitive advantage of investment strategies in financial markets," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-23, February.
    2. Li-Xin Zhong & Wen-Juan Xu & Ping Huang & Chen-Yang Zhong & Tian Qiu, 2013. "Self-organization and phase transition in financial markets with multiple choices," Papers 1312.0690, arXiv.org, revised Jun 2014.
    3. Li-Xin Zhong & Wen-Juan Xu & Fei Ren & Yong-Dong Shi, 2012. "Coupled effects of market impact and asymmetric sensitivity in financial markets," Papers 1209.3399, arXiv.org, revised Jan 2013.
    4. Zhong, Li-Xin & Xu, Wen-Juan & Ren, Fei & Shi, Yong-Dong, 2013. "Coupled effects of market impact and asymmetric sensitivity in financial markets," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(9), pages 2139-2149.
    5. Wen-Juan Xu & Chen-Yang Zhong & Fei Ren & Tian Qiu & Rong-Da Chen & Yun-Xin He & Li-Xin Zhong, 2020. "Evolutionary dynamics in financial markets with heterogeneities in strategies and risk tolerance," Papers 2010.08962, arXiv.org.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eurphb:v:47:y:2005:i:4:p:587-593. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.