Extremal optimization is a new general-purpose method for approximating sol
utions to hard optimization problems. We study the method in detail by way
of the computationally hard (NP-hard) graph partitioning problem. We discus
s the scaling behavior of extremal optimization, focusing on the convergenc
e of the average run as a function of run time and system size. The method
has a single free parameter, which we determine numerically and justify usi
ng a simple argument. On random graphs, our numerical results demonstrate t
hat extremal optimization maintains consistent accuracy for increasing syst
em sizes, with an approximation error decreasing over run time roughly as a
power law t(-0.4). On geometrically structured graphs, the scaling of resu
lts from the average run suggests that these are far from optimal with larg
e fluctuations between individual trials. But when only the best runs are c
onsidered, results consistent with theoretical arguments are recovered.