Congestion, Equilibrium and Learning: The Minority Game

W. Kets, M. Voorneveld

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Abstract

The minority game is a simple congestion game in which the players’ main goal is to choose among two options the one that is adopted by the smallest number of players. We characterize the set of Nash equilibria and the limiting behavior of several well-known learning processes in the minority game with an arbitrary odd number of players. Interestingly, different learning processes provide considerably different predictions.
Original languageEnglish
Place of PublicationTilburg
PublisherMicroeconomics
Number of pages27
Volume2007-61
Publication statusPublished - 2007

Publication series

NameCentER Discussion Paper
Volume2007-61

Keywords

  • Learning
  • congestion games
  • replicator dynamic
  • perturbed best response dynamics
  • quantal response equilibria
  • best-reply learning

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    Kets, W., & Voorneveld, M. (2007). Congestion, Equilibrium and Learning: The Minority Game. (CentER Discussion Paper; Vol. 2007-61). Microeconomics.