Shedding light on El Farol

Abstract

We mathematize El Farol bar problem and transform it into a workable model. In general, the average convergence to optimality at the collective level is trivial and does not even require any intelligence on the side of agents. Secondly, specializing to a particular ensemble of continuous strategies yields a model similar to the Minority Game. Statistical physics of disordered systems allows us to derive a complete understanding of the complex behavior of this model, on the basis of its phase diagram.

8 pages, 5 figures

References in corpus (3)

• Generating Functional Analysis of the Dynamics of the Batch Minority Game with Random External Information
• Continuum time limit and stationary states of the Minority Game
• Influence of external information in the minority game

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