Complex Systems

A New Algorithmic Approach to the Minority Game Download PDF

R. Mansilla
Department of Complex Systems,
Physical Institute, National University of Mexico
Department of Differential Equations,
Faculty of Mathematics and Computer Science,
University of Havana, Cuba


In this paper a new approach for the study of the complex behavior of the minority game is introduced that uses the tools of algorithmic complexity, physical entropy, and information theory. It is shown that physical complexity and mutual information functions strongly depend on memory size of the agents. This yields more information about the complex features of the stream of binary outcomes of the game than volatility itself.