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Stochastic strategies in the Minority Game

M. Hart, P. Jefferies, N. F. Johnson, P. M. Hui

cond-matarXiv:cond-mat/0006141

Abstract

We show analytically how the fluctuations (i.e. standard deviation) in the Minority Game (MG) can decrease below the random coin-toss limit if the agents use more general, stochastic strategies. This suppression of the standard deviation results from a cancellation between the actions of a crowd, in which agents act collectively and make the same decision, and an anticrowd in which agents act collectively by making the opposite decision to the crowd.

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