From Randomness to Periodicity --- the Effect of Polarization in the Minority Game Strategy Space

M. Zaluska-Kotur

Properties and behavior of modified minority game are analyzed. It appears that results of the game depend strongly on the way how we draw strategies for players. The probability that given strategy will be chosen is determined by the polarization parameter P. This parameter differs between strategies that go along or against the existing market trend. Strong polarization of the space leads to the periodic dynamics and, finally, for negative P values to the domination of the single strategy in the system. When P is changed the variability of the process decreases, showing kind of the phase transition region. The dependence of the variability on the polarization parameter can be understood on the basis of the crowd--anticrowd theory.


Acta Phys B Vol. 36, No. 8, (2005)