Intelligent Minority Game with genetic-crossover strategies

TL;DR

This paper introduces an intelligent minority game where agents evolve strategies via genetic crossover, leading to rapid efficiency improvements without phase transitions, highlighting adaptive behavior in complex systems.

Contribution

It presents a novel model of the minority game with strategy evolution through genetic crossover, showing enhanced efficiency and no phase transition behavior.

Findings

Agents' performance improves rapidly with genetic crossover

Game reaches an efficient state with low fluctuations

No phase transition observed when varying key parameters

Abstract

We develop a game theoretical model of $N$ heterogeneous interacting agents called the intelligent minority game. The ``intelligent'' agents play the basic minority game and depending on their performances, generate new strategies using the one-point genetic crossover mechanism. The performances change dramatically and the game moves rapidly to an efficient state (fluctuations in the number of agents performing a particular action, characterized by $\sigma^2$, reaches a low value). There is no ``phase transition'' when we vary $\sigma^2/N$ with $2^M/N$, where $M$ is the ``memory''of an agent.