A Bayesian model of game decomposition

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

In this paper, we propose a Bayesian probabilistic model to describe collective behavior generated by a finite number of agents competing for limited resources. In this model, the strategy for each agent is a binary choice in the Minority Game and it can be modeled by a Binomial distribution with a Beta prior. The strategy of an agent can be learned given a sequence of historical choices by using Bayesian inference. Aggregated micro-level choices constitute the observable time series data in macro-level, therefore, this can be regarded as a machine learning model for time series prediction. To verify the effectiveness of the new model, we conduct a series of experiments on artificial data and real-world stock price data. Experimental results demonstrate the new proposed model has a better performance comparing to a genetic algorithm based decomposition model.

Original languageEnglish
Title of host publicationAdvances in Artificial Intelligence
Subtitle of host publicationFrom Theory to Practice - 30th International Conference on Industrial Engineering and Other Applications of Applied Intelligent Systems, IEA/AIE 2017, Proceedings
EditorsMoonis Ali, Salem Benferhat, Karim Tabia
PublisherSpringer Verlag
Pages82-91
Number of pages10
ISBN (Print)9783319600413
DOIs
StatePublished - 2017
Event30th International Conference on Industrial, Engineering, and Other Applications of Applied Intelligent Systems, IEA/AIE 2017 - Arras, France
Duration: 27 Jun 201730 Jun 2017

Publication series

NameLecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume10350 LNCS
ISSN (Print)0302-9743
ISSN (Electronic)1611-3349

Conference

Conference30th International Conference on Industrial, Engineering, and Other Applications of Applied Intelligent Systems, IEA/AIE 2017
Country/TerritoryFrance
CityArras
Period27/06/1730/06/17

Keywords

  • Bayesian inference
  • Collective behaviour
  • Stock prediction

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