Abstract
Phase transitions are being used increasingly to probe the collective behaviors of social human systems. In this study, we propose a different way of investigating such transitions in a human system by establishing a two-sided minority game model. A new type of agents who can actively transfer resources are added to our artificial bipartite resource-allocation market. The degree of deviation from equilibria is characterized by the entropy-like quantity of market complexity. Under different threshold values, Q th , two phases are found by calculating the exponents of the associated power spectra. For large values of Q th , the general motion of strategies for the agents is relatively periodic whereas for low values of Q th , the motion becomes chaotic. The transition occurs abruptly at a critical value of Q th . Our simulation results were also tested based on human experiments. The results of this study suggest that a chaotic-periodic transition related to the quantity of market information should exist in most bipartite markets, thereby allowing better control of such a transition and providing a better understanding of the endogenous emergence of business cycles from the perspective of quantum mechanics.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
D. Challet and Y. C. Zhang, Emergence of cooperation and organization in an evolutionary game, Physica A 246(3–4), 407 1997
L. X. Zhong, D. F. Zheng, B. Zheng, and P. M. Hui, Effects of contrarians in the minority game, Phys. Rev. E 72(2), 026134 2005
O. P. Hauser, D. G. Rand, A. Peysakhovich, and M. A. Nowak, Cooperating with the future, Nature 511(7508), 220 2014
I. Erev and A. E. Roth, Maximization, learning, and economic behavior, Proc. Natl. Acad. Sci. USA 111(Suppl 3), 10818 (2014)
S. Biswas, A. Ghosh, A. Chatterjee, T. Naskar, and B. K. Chakrabarti, Continuous transition of social efficiencies in the stochastic-strategy minority game, Phys. Rev. E 85(3), 031104 2012
B. Zheng, T. Qiu, and F. Ren, Two-phase phenomena, minority games, and herding models, Phys. Rev. E 69(4), 046115 2004
M. Anghel, Z. Toroczkai, K. E. Bassler, and G. Korniss, Competition-driven network dynamics: Emergence of a scale-free leadership structure and collective efficiency, Phys. Rev. Lett. 92(5), 058701 2004
D. Challet and M. Marsili, Criticality and market efficiency in a simple realistic model of the stock market, Phys. Rev. E 68(3), 036132 2003
D. Challet, M. Marsili, and Y. C. Zhang, Stylized facts of financial markets and market crashes in minority games, Physica A 294(3–4), 514 2001
W. Wang, Y. Chen, and J. Huang, Heterogeneous preferences, decision-making capacity, and phase transitions in a complex adaptive system, Proc. Natl. Acad. Sci. USA 106(21), 8423 2009
J. P. Huang, Experimental econophysics: Complexity, selforganization, and emergent properties, Phys. Rep. 564, 1 2014
Y. Liang, K. N. An, G. Yang, and J. P. Huang, Contrarian behavior in a complex adaptive system, Phys. Rev. E 87(1), 012809 2013
G. Yang, W. Z. Zheng, and J. P. Huang, Partial information, market efficiency, and anomalous continuous phase transition, J. Stat. Mech. 2014(4), P04017 2014
L. Zhao, G. Yang, W. Wang, Y. Chen, J. P. Huang, H. Ohashi, and H. E. Stanley, Herd behavior in a complex adaptive system, Proc. Natl. Acad. Sci. USA 108(37), 15058 2011
W. Z. Zheng, Y. Liang, and J. P. Huang, Equilibrium state and non-equilibrium steady state in an isolated human system, Front. Phys. 9(1), 128 2014
J. C. Rochet and J. Tirole, Platform competition in twosided markets, J. Eur. Econ. Assoc. 1(4), 990 2003
G. G. Parker and M. W. Van Alstyne, Two-sided network effects: A theory of information product design, Manage. Sci. 51(10), 1494 2005
Y. Zhang and W. H. Wan, States and transitions in mixed networks, Front. Phys. 9(4), 523 2014
Y. H. Chen, W. Wu, G. C. Liu, H. S. Tao, and W. M. Liu, Quantum phase transition of cold atoms trapped in optical lattices, Front. Phys. 7(2), 223 2012
Y. Liang and J. P. Huang, Robustness of critical points in a complex adaptive system: Effects of hedge behavior, Front. Phys. 8(4), 461 2013
B. B. Mandelbrot and J. W. Van Ness, Fractional Brownian motions, fractional noises and applications, SIAM Rev. 10(4), 422 1968
P. Bak, C. Tang, and K. Wiesenfeld, Self-organized criticality: An explanation of the 1/f noise, Phys. Rev. Lett. 59(4), 381 1987
M. Magdziarz, A. Weron, K. Burnecki, and J. Klafter, Fractional Brownian motion versus the continuous-time random walk: a simple test for subdiffusive dynamics, Phys. Rev. Lett. 103(18), 180602 2009
R. Metzler, J. H. Jeon, A. G. Cherstvy, and E. Barkai, Anomalous diffusion models and their properties: Nonstationarity, non-ergodicity, and ageing at the centenary of single particle tracking, Phys. Chem. Chem. Phys. 16(44), 24128 2014
S. Gualdi, J. P. Bouchaud, G. Cencetti, M. Tarzia, and F. Zamponi, Endogenous crisis waves: Stochastic model with synchronized collective behavior, Phys. Rev. Lett. 114(8), 088701 2015
I. Bashkirtseva, T. Ryazanova, and L. Ryashko, Confidence domains in the analysis of noise-induced transition to chaos for Goodwin model of business cycles, Int. J. Bifurcation Chaos 24(08), 1440020 2014
J. P. Huang, Experimental Econophysics: Properties and Mechanisms of Laboratory Markets, Berlin Heidelberg: Springer, 2015
L. Putterman, Behavioural economics: A caring majority secures the future, Nature 511(7508), 165 2014
T. Jia, B. Jiang, K. Carling, M. Bolin, and Y. F. Ban, An empirical study on human mobility and its agent-based modeling, J. Stat. Mech. 2012(11), P11024 2012
Author information
Authors and Affiliations
Corresponding authors
Rights and permissions
About this article
Cite this article
Li, XH., Yang, G. & Huang, JP. Chaotic-periodic transition in a two-sided minority game. Front. Phys. 11, 118901 (2016). https://doi.org/10.1007/s11467-016-0552-y
Received:
Accepted:
Published:
DOI: https://doi.org/10.1007/s11467-016-0552-y