Minority Game With Peer Pressure

TL;DR

This paper introduces a networked minority game model incorporating peer pressure, revealing that local interactions significantly alter cooperation levels compared to traditional models, challenging existing theoretical predictions.

Contribution

The study develops a novel networked minority game model that accounts for local peer influence, providing new insights into cooperation dynamics in complex systems.

Findings

Cooperation levels differ from the original minority game.

Deviations from crowd-anticrowd theory are observed.

Four point correlations influence system behavior.

Abstract

To study the interplay between global market choice and local peer pressure, we construct a minority-game-like econophysical model. In this so-called networked minority game model, every selfish player uses both the historical minority choice of the population and the historical choice of one's neighbors in an unbiased manner to make decision. Results of numerical simulation show that the level of cooperation in the networked minority game differs remarkably from the original minority game as well as the prediction of the crowd-anticrowd theory. We argue that the deviation from the crowd-anticrowd theory is due to the negligence of the effect of a four point correlation function in the effective Hamiltonian of the system.