Phase Transition and Symmetry Breaking in the Minority Game

TL;DR

This paper models the Minority Game as a spin system, revealing a phase transition from a symmetric to a symmetry-broken phase where outcomes become predictable, akin to spontaneous magnetization.

Contribution

It introduces a spin system framework for the Minority Game, demonstrating a phase transition and spontaneous symmetry breaking in the model.

Findings

Identification of a phase transition in the Minority Game

Existence of a symmetry-broken phase with predictable outcomes

Spontaneous magnetization analogous to spin systems

Abstract

We show that the Minority Game, a model of interacting heterogeneous agents, can be described as a spin systems and it displays a phase transition between a symmetric phase and a symmetry broken phase where the games outcome is predicable. As a result a ``spontaneous magnetization'' arises in the spin formalism.