Playing The Hypothesis Testing Minority Game In The Maximal Reduced Strategy Space

TL;DR

This paper investigates the Hypothesis Testing Minority Game (HMG) within the maximal reduced strategy space, revealing strategy space-dependent cooperation levels and novel intermittency dynamics, explained by crowd-anticrowd theory.

Contribution

It extends the analysis of HMG to the maximal reduced strategy space, uncovering new dynamics and dependencies not observed in the full strategy space.

Findings

Cooperation levels in HMG depend on the strategy space used.

Novel intermittency dynamics observed in minority choice time series.

Crowd-anticrowd theory explains the observed phenomena.

Abstract

Hypothesis Testing Minority Game (HMG) is a variant of the standard Minority Game (MG) that models the inertial behavior of agents in the market. In the earlier study of our group, we find that agents cooperate better in HMG than in the standard MG when strategies are picked from the full strategy space. Here we continue to study the behavior of HMG when strategies are chosen from the maximal reduced strategy space. Surprisingly, we find that, unlike the standard MG, the level of cooperation in HMG depends strongly on the strategy space used. In addition, a novel intermittency dynamics is also observed in the minority choice time series in a certain parameter range in which the orderly phases are characterized by a variety of periodic dynamics. Remarkably, all these findings can be explained by the crowd-anticrowd theory.