Need, greed and noise: competing strategies in a trading model

Authored by R Donangelo, A Hansen, K Sneppen, SR Souza

Date Published: 2005-03-15

DOI: 10.1016/j.physa.2004.09.046

Sponsors: Brazilian National Council for Scientific and Technological Development (CNPq)

Platforms: No platforms listed

Model Documentation: Other Narrative Mathematical description

Model Code URLs: Model code not found

Abstract

We study an economic model where agents trade a variety of products by using one of the three competing rules: “need”, “greed” and “noise”. We find that the optimal strategy for ally agent depends on both product composition in the overall market and composition of strategies in the market. In particular, a strategy that does best on pairwise competition may easily do much worse when all are present, leading, in some cases, to a “paper, stone, scissors” circular hierarchy. (C) 2004 Elsevier B.V. All rights reserved.

Tags

Agent-based models Economic models strategic games