Generalized strategies in the minority game

Phys Rev E Stat Nonlin Soft Matter Phys. 2001 Jan;63(1 Pt 2):017102. doi: 10.1103/PhysRevE.63.017102. Epub 2000 Dec 21.


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