Abstract
Complex adaptive systems have been the subject of much recent attention. It is by now well established that members ("agents") tend to self-segregate into opposing groups characterized by extreme behavior. However, the study of such adaptive systems has mostly been restricted to simple situations in which the prize-to-fine ratio R equals unity. In this Letter we explore the dynamics of evolving populations with various different values of the ratio R, and demonstrate that extreme behavior is in fact not a generic feature of adaptive systems. In particular, we show that "confusion" and "indecisiveness" take over in times of depression, in which case cautious agents perform better than extreme ones.
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