Abstract
In this paper Minority Game is applied to model financial market, which deals with the problem how the equilibrium could be dynamically attained as heterogeneous agents interacting with each other. It is found that market self-organization is of evolutionary nature and takes place on longer time-scales. When few agents are present, the market is easily predictable and agents perform slightly better than random agents. When more agents are added, the market becomes more efficient and less predictable. As a whole, the financial market is a zero sum game.
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Acknowledgments
This research was funded by the Scientific Research Foundation of Bei**g Municipal Commission of Education (No.KM201110028019).
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Yu, Y., Zhang, J., Zhang, Y. (2015). Modeling the Financial Market Based on Minority Game. In: Zhang, R., Zhang, Z., Liu, K., Zhang, J. (eds) LISS 2013. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40660-7_191
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DOI: https://doi.org/10.1007/978-3-642-40660-7_191
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