Theory of Minority Games

  • 31 August 1999
Abstract
We discuss a recently introduced model of heterogeneous interacting agents behaving under inductive rationality. We derive the exact solution of the model in the limit of infinitely many agents using tools of statistical physics of disordered systems. Our results show that the impact of agents on the collective behavior plays a key role: even though for each agent this effect is very small, the collective behavior crucially depends on whether agents account for it or not.