Challet, Damien, 1974-, De Martino, Andrea, Marsili, Matteo, 1966- and Castillo, Isaac Pérez (2004) Minority games with finite score memory. Working Paper. Warwick Business School, Financial Econometrics Research Centre, Coventry.

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Abstract

We analyze grand-canonical minority games with infinite and finite score memory and different updating timescales (from ‘on-line’ games to ‘batch’ games) in detail with various complementary methods, both analytical and numerical. We focus on the emergence of ‘stylized facts’ and on the production of exploitable information, as well as on the dynamic behaviour of the models. We find that with finite score memory no agent can be frozen, and that all the current analytical methods fail to provide satisfactory explanation of the observed behaviours.

Item Type:	Working or Discussion Paper (Working Paper)
Subjects:	H Social Sciences > HB Economic Theory Q Science > QA Mathematics
Divisions:	Faculty of Social Sciences > Warwick Business School > Financial Econometrics Research Centre Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH):	Stochastic analysis, Economics -- Mathematical models, Social networks -- Mathematical models, Game theory
Series Name:	Working papers (Warwick Business School. Financial Econometrics Research Centre)
Publisher:	Warwick Business School, Financial Econometrics Research Centre
Place of Publication:	Coventry
Date:	22 July 2004
Number:	No.04-
Number of Pages:	16
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
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URI:	http://wrap.warwick.ac.uk/id/eprint/1791

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