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This book chapter is an introduction to and an overview of the information-theoretic, task independent utility function "Empowerment", which is defined as the channel capacity between an agent's actions and an agent's sensors. It quantifies…

Artificial Intelligence · Computer Science 2013-10-09 Christoph Salge , Cornelius Glackin , Daniel Polani

An agent-based model for firms' dynamics is developed. The model consists of firm agents with identical characteristic parameters and a bank agent. Dynamics of those agents is described by their balance sheets. Each firm tries to maximize…

General Finance · Quantitative Finance 2009-01-14 Hiroshi Iyetomi , Hideaki Aoyama , Yoshi Fujiwara , Yuichi Ikeda , Wataru Souma

Collective behavior pervades biological systems, from flocks of birds to neural assemblies and human societies. Yet, how such collectives acquire functional properties -- such as joint agency or knowledge -- that transcend those of their…

Adaptation and Self-Organizing Systems · Physics 2026-01-30 Domenico Maisto , Davide Nuzzi , Giovanni Pezzulo

Classical game-theoretic models typically assume rational agents, complete information, and common knowledge of payoffs - assumptions that are often violated in real-world MAS characterized by uncertainty, misaligned perceptions, and nested…

Artificial Intelligence · Computer Science 2026-02-16 Vince Trencsenyi , Agnieszka Mensfelt , Kostas Stathis

This paper considers neural representation through the lens of active inference, a normative framework for understanding brain function. It delves into how living organisms employ generative models to minimize the discrepancy between…

Neurons and Cognition · Quantitative Biology 2023-10-24 Giovanni Pezzulo , Leo D'Amato , Francesco Mannella , Matteo Priorelli , Toon Van de Maele , Ivilin Peev Stoianov , Karl Friston

Machine Learning systems are increasingly deployed in decision-making settings that shape user behavior and, in turn, the data on which future decisions are based. Performative Prediction (PP) formalizes this feedback loop by modeling how…

Machine Learning · Computer Science 2026-05-13 Javier Sanguino Bautiste , Thomas Kehrenberg , Jose A. Lozano , Novi Quadrianto

To date, formal models of collective intelligence have lacked a plausible mathematical description of the relationship between local-scale interactions between highly autonomous sub-system components (individuals) and global-scale behavior…

Social and Information Networks · Computer Science 2021-07-21 Rafael Kaufmann , Pranav Gupta , Jacob Taylor

Active inference may be defined as Bayesian modeling of a brain with a biologically plausible model of the agent. Its primary idea relies on the free energy principle and the prior preference of the agent. An agent will choose an action…

Machine Learning · Computer Science 2021-12-14 Jin young Shin , Cheolhyeong Kim , Hyung Ju Hwang

We develop the compositional theory of active inference by introducing activity, functorially relating statistical games to the dynamical systems which play them, using the new notion of approximate inference doctrine. In order to exhibit…

Adaptation and Self-Organizing Systems · Physics 2022-08-26 Toby St. Clere Smithe

Computational preference elicitation methods are tools used to learn people's preferences quantitatively in a given context. Recent works on preference elicitation advocate for active learning as an efficient method to iteratively construct…

Human-Computer Interaction · Computer Science 2024-07-29 Vijay Keswani , Vincent Conitzer , Hoda Heidari , Jana Schaich Borg , Walter Sinnott-Armstrong

We pose an active perception problem where an autonomous agent actively interacts with a second agent with potentially adversarial behaviors. Given the uncertainty in the intent of the other agent, the objective is to collect further…

Artificial Intelligence · Computer Science 2019-09-20 Macheng Shen , Jonathan P How

An axiomatic approach to macroeconomics based on the mathematical structure of thermodynamics is presented. It deduces relations between aggregate properties of an economy, concerning quantities and flows of goods and money, prices and the…

General Economics · Economics 2025-06-18 N. J. Chater , R. S. MacKay

Bounded rationality is an important consideration stemming from the fact that agents often have limits on their processing abilities, making the assumption of perfect rationality inapplicable to many real tasks. We propose an…

Information Theory · Computer Science 2021-05-28 Benjamin Patrick Evans , Mikhail Prokopenko

Intelligent agents offer a new and exciting way of understanding the world of work. Agent-Based Simulation (ABS), one way of using intelligent agents, carries great potential for progressing our understanding of management practices and how…

Artificial Intelligence · Computer Science 2010-07-05 Peer-Olaf Siebers , Uwe Aickelin , Helen Celia , Chris Clegg

Predictive processing and active inference posit that the brain is a system performing Bayesian inference on the environment. By virtue of this, a prominent interpretation of predictive processing states that the generative model (a POMDP)…

Neurons and Cognition · Quantitative Biology 2025-08-26 Manuel Baltieri , Filippo Torresan , Tomoya Nakai

The sum-utility maximization problem is known to be important in the energy systems literature. The conventional assumption to address this problem is that the utility is concave. But for some key applications, such an assumption is not…

Computer Science and Game Theory · Computer Science 2021-12-07 Chao Zhang , Samson Lasaulce , Li Wang , Lucas Saludjian , H. Vincent Poor

We introduce a utility-driven bounded-confidence model of opinion dynamics in which opinions associated with higher utility exert stronger social influence. In the regime where all agents belong to a single opinion cluster, we derive a…

Adaptation and Self-Organizing Systems · Physics 2026-05-22 Alex Siebenmorgen , Juan G. Restrepo

Demand-Response (DR) programs, whereby users of an electricity network are encouraged by economic incentives to rearrange their consumption in order to reduce production costs, are envisioned to be a key feature of the smart grid paradigm.…

Optimization and Control · Mathematics 2016-12-15 Alberto Benegiamo , Patrick Loiseau , Giovanni Neglia

Active Inference is a closed-loop computational theoretical basis for understanding behaviour, based on agents with internal probabilistic generative models that encode their beliefs about how hidden states in their environment cause their…

Human-Computer Interaction · Computer Science 2024-12-20 Roderick Murray-Smith , John H. Williamson , Sebastian Stein

We calculate the dynamics of tax evasion within a multi-agent econophysics model which is adopted from the theory of magnetism and previously has been shown to capture the main characteristics from agent-based based models which build on…

General Finance · Quantitative Finance 2014-10-01 S. Hokamp , G. Seibold