Eur. Phys. J. B 47, 587-593 (2005)
https://doi.org/10.1140/epjb/e2005-00350-9

Global optimization of minority game by intelligent agents

¹ Nonlinear Science Center and Department of Modern Physics, University of Science and Technology of China, Hefei, 230026, P.R. China
² Institute of Physics, Academia Sinica, Nankang, Taipei 11529, Taiwan

Corresponding author: ^a bhwang@ustc.edu.cn

Received: 18 June 2005
Revised: 20 June 2005
Published online: 17 November 2005

Abstract

We propose a new model of minority game with intelligent agents who use trail and error method to make a choice such that the standard deviation and the total loss in this model reach the theoretical minimum values in the long time limit and the global optimization of the system is reached. This suggests that the economic systems can self-organize into a highly optimized state by agents who make decisions based on inductive thinking, limited knowledge, and capabilities. When other kinds of agents are also present, the simulation results and analytic calculations show that the intelligent agent can gain profits from producers and are much more competent than the noise traders and conventional agents in original minority games proposed by Challet and Zhang.