Incomplete Rationality vs. Incomplete Strategy in Minority Game Model

Abstract

Based on standard minority game, an Irrationality Agent Minority Game (IAMG) model is proposed, in which agents are less rational to make use of its strategy properly at each step. The control parameter of irrationality, pI, represents the probability of an agent acting irrationally, which could be explained with the personal defect. Like the incomplete (strategy) minority game (IMG) model introduced in our previous paper, this IAMG model also has three failsafe mode including (R0) random action, (R1) random strategy and (R4)”Back- to-Best”. The IAMG model can be explain with analytic equations similar with the IMG, and simulation results match the trend of the conclusion. Irrationality shows a great effect on system efficiency, and system efficiency reaches its top value at a smaller pIc than pIc in IMG. The IAMG and IMG model can be used to explain the deviation of some game theory simulations, and to understand the system performance with abundant agents of various characters.