The benefits of a recently proposed method to approximate hard optimization
problems are demonstrated on the graph partitioning problem. The performan
ce of this new method, called extremal optimization (EO), is compared with
simulated annealing (SA) in extensive numerical simulations. While generall
y a complex (NP-hard) problem, the optimization of the graph partitions is
particularly difficult for sparse graphs with average connectivities near t
he percolation threshold. At this threshold, the relative error of SA for l
arge graphs is found to diverge relative to EO at equalized runtime. On the
other hand, EO, based on the extremal dynamics of self-organized critical
systems, reproduces known results about optimal partitions at this critical
point quite well.