Crowd-anticrowd theory of the minority game

The Minority Game is a simple yet highly non-trivial agent-based model for a complex adaptive system. Here, we provide an explanation of the game's fl uctuations which is both intuitive and quantitative, and which applies over the entire parameter range of interest. The physical idea behind our theor y is to describe the interplay between crowds of like-minded agents and the ir anticorrelated partners (anticrowds). (C) 2001 Elsevier Science B.V. All rights reserved.