Effects of substrate network topologies on competition dynamics

TL;DR

This paper investigates how different substrate network topologies affect competition dynamics in a minority game, revealing that network structure influences efficiency, herding behavior, and leads to scale-free leadership networks.

Contribution

It introduces the analysis of substrate network effects on minority game dynamics, highlighting the emergence of scale-free leadership structures and their impact on system efficiency.

Findings

Network topology significantly affects system volatility and efficiency.

Substrate networks amplify herding effects and inefficiencies.

Follower networks exhibit power-law degree distributions, indicating scale-free leadership structures.

Abstract

We study a competition dynamics, based on the minority game, endowed with various substrate network structures. We observe the effects of the network topologies by investigating the volatility of the system and the structure of follower networks. The topology of substrate structures significantly influences the system efficiency represented by the volatility and such substrate networks are shown to amplify the herding effect and cause inefficiency in most cases. The follower networks emerging from the leadership structure show a power-law incoming degree distribution. This study shows the emergence of scale-free structures of leadership in the minority game and the effects of the interaction among players on the networked version of the game.