2006/09/26 by H. M. Yang, Yang, H. M., Yuan-Sen Ting +4
Decision Sciences · Economics, Econometrics and Finance · Physics and Astronomy · #Complex Systems and Time Series Analysis #Economic theories and models #FOS: Economics and business #FOS: Physical sciences #Game Theory and Applications #General Finance (q-fin.GN) #Physics and Society (physics.soc-ph) #physics.soc-ph #q-fin.GN
paper · pdf · doi:10.48550/arxiv.physics/0609230
4 pages, 8 figures
arxiv created 2006/09/26 · openalex publication_date 2006/09/26 · arxiv updated 2009/12/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
In an adaptive population which models financial markets and distributed control, we consider how the dynamics depends on the diversity of the agents' initial preferences of strategies. When the diversity decreases, more agents tend to adapt their strategies together. This change in the environment results in dynamical transitions from vanishing to non-vanishing step sizes. When the diversity decreases further, we find a cascade of dynamical transitions for the different signal dimensions, supported by good agreement between simulations and theory. Besides, the signal of the largest step size at the steady state is likely to be the initial signal.