Related papers: Potterian Economics
We propose to study market efficiency from a computational viewpoint. Borrowing from theoretical computer science, we define a market to be \emph{efficient with respect to resources $S$} (e.g., time, memory) if no strategy using resources…
This paper presents a praxeological analysis of artificial intelligence and algorithmic governance, challenging assumptions about the capacity of machine systems to sustain economic and epistemic order. Drawing on Misesian a priori…
This paper proposes a new way to model behavioral agents in dynamic macro-financial environments. Agents are described as neural networks and learn policies from idiosyncratic past experiences. I investigate the feedback between…
Many of today's online services provide personalized recommendations to their users. Such recommendations are typically designed to serve certain user needs, e.g., to quickly find relevant content in situations of information overload.…
Machine learning is a computational process. To that end, it is inextricably tied to computational power - the tangible material of chips and semiconductors that the algorithms of machine intelligence operate on. Most obviously,…
Ecologists and economists try to explain collective behavior in terms of competitive systems of selfish individuals with the ability to learn from the past. Statistical physicists have been investigating models which might contribute to the…
This paper is part of an ongoing investigation of "pragmatic information", defined in Weinberger (2002) as "the amount of information actually used in making a decision". Because a study of information rates led to the Noiseless and Noisy…
We introduce the notion of performative power, which measures the ability of a firm operating an algorithmic system, such as a digital content recommendation platform, to cause change in a population of participants. We relate performative…
We propose an agent-based model of collective opinion formation to study the wisdom of crowds under social influence. The opinion of an agent is a continuous positive value, denoting its subjective answer to a factual question. The wisdom…
Being able to correctly aggregate the beliefs of many people into a single belief is a problem fundamental to many important social, economic and political processes such as policy making, market pricing and voting. Although there exist…
Generative models, like the one in ChatGPT, are powered by their training data. The models are simply next-word predictors, based on patterns learned from vast amounts of pre-existing text. Since the first generation of GPT, it is striking…
When making decisions under risk, people often exhibit behaviors that classical economic theories cannot explain. Newer models that attempt to account for these irrational behaviors often lack neuroscience bases and require the introduction…
Would artificial intelligence (AI) cut interest rates or adopt conservative monetary policy? Would it deregulate or opt for a more controlled economy? As AI use by economic policymakers, academics, and market participants grows…
In this paper, we examine the wide-ranging impact of artificial intelligence on society, focusing on its potential to both help and harm global equity, cognitive abilities, and economic stability. We argue that while artificial intelligence…
The study of opinions, their formation and change, is one of the defining topics addressed by social psychology, but in recent years other disciplines, like computer science and complexity, have tried to deal with this issue. Despite the…
The cost of the impacts of climate change have already proven to be larger than previously believed. Understanding the costs and benefits of adapting to the changing climate is necessary to make targeted and appropriate investment…
Humans are not homo economicus (i.e., rational economic beings). As humans, we exhibit systematic behavioral biases such as loss aversion, anchoring, framing, etc., which lead us to make suboptimal economic decisions. Insofar as such biases…
We studied the research performance of 69 countries by considering two different types of new knowledge: incremental (normal) and fundamental (radical). In principle, these two types of new knowledge should be assessed at two very different…
We believe that economic design and computational complexity---while already important to each other---should become even more important to each other with each passing year. But for that to happen, experts in on the one hand such areas as…
Social interactions and personal tastes shape our consumption behavior of cultural products. In this study, we present a computational model of a cultural market and we aim to analyze the behavior of the consumer population as an emergent…