Minority Game — Market Ecology

N agents repeatedly choose between two options (0 or 1). The minority wins. Agents use history-based strategies, scored and switched adaptively. The system self-organizes near a phase transition between high and low "market efficiency."

Attendance: — Variance σ²: — Efficiency: — Round: 0

N agents101

Memory m3

Strategies S4

α = 2^m/N—

Speed5

The minority game (Challet-Zhang 1997) reveals a phase transition at α = 2^m/N ≈ 0.34. For α < αc: many strategies equivalent, herding dominates, high variance (inefficient market). For α > αc: diversity of strategies, self-organized efficiency. The critical point minimizes fluctuations — the market is most "intelligent" near the phase transition.