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The 'free energy principle' (FEP) has been suggested to provide a unified theory of the brain, integrating data and theory relating to action, perception, and learning. The theory and implementation of the FEP combines insights from…

Neurons and Cognition · Quantitative Biology 2017-05-26 Christopher L. Buckley , Chang Sub Kim , Simon McGregor , Anil K. Seth

We have used agent-based modeling as our numerical method to artificially simulate a dynamic real economy where agents are rational maximizers of an objective function of Cobb-Douglas type. The economy is characterised by heterogeneous…

Theoretical Economics · Economics 2024-01-17 Subhamon Supantha , Naresh Kumar Sharma

This paper investigates the dynamics of noncooperative interactions between artificial intelligence agents and human decision-makers in strategic environments. In particular, motivated by extensive literature in behavioral Economics, human…

Computer Science and Game Theory · Computer Science 2026-03-19 Dylan Waldner , Vyacheslav Kungurtsev , Mitchelle Ashimosi

The famous Saint Petersburg Paradox (St. Petersburg Paradox) shows that the theory of expected value does not capture the real-world economics of decision-making problems. Over the years, many economic theories were developed to resolve the…

General Economics · Economics 2020-05-19 Daniel Muller , Tshilidzi Marwala

Understanding how road users resolve space-sharing conflicts is important both for traffic safety and the safe deployment of autonomous vehicles. While existing models have captured specific aspects of such interactions (e.g., explicit…

Artificial Intelligence · Computer Science 2026-05-12 Julian F. Schumann , Johan Engström , Ran Wei , Shu-Yuan Liu , Jens Kober , Arkady Zgonnikov

Data subsampling has become widely recognized as a tool to overcome computational and economic bottlenecks in analyzing massive datasets. We contribute to the development of adaptive design for estimation of finite population…

Methodology · Statistics 2024-07-08 Henrik Imberg , Xiaomi Yang , Carol Flannagan , Jonas Bärgman

Mutual Information between agent Actions and environment States (MIAS) quantifies the influence of agent on its environment. Recently, it was found that the maximization of MIAS can be used as an intrinsic motivation for artificial agents.…

Machine Learning · Computer Science 2020-08-04 Ruihan Zhao , Stas Tiomkin , Pieter Abbeel

We provide an economic interpretation of the practice consisting in incorporating risk measures as constraints in a classic expected return maximization problem. For what we call the infimum of expectations class of risk measures, we show…

Risk Management · Quantitative Finance 2009-06-19 Laetitia Andrieu , Michel De Lara , Babacar Seck

The aim of this paper is twofold: (1) to assess whether the construct of neural representations plays an explanatory role under the variational free-energy principle and its corollary process theory, active inference; and (2) if so, to…

Neurons and Cognition · Quantitative Biology 2023-07-19 Maxwell Ramstead , Karl Friston , Ines Hipolito

The thesis of this essay is that, in heterogeneous agent macroeconomics, the assumption of rational expectations about equilibrium prices is unrealistic and should be replaced. Rational expectations imply that decision makers forecast…

General Economics · Economics 2025-08-29 Benjamin Moll

Planning under uncertainty is a central problem in the study of automated sequential decision making, and has been addressed by researchers in many different fields, including AI planning, decision analysis, operations research, control…

Artificial Intelligence · Computer Science 2011-05-30 C. Boutilier , T. Dean , S. Hanks

Phenomenology is the rigorous descriptive study of conscious experience. Recent attempts to formalize Husserlian phenomenology provide us with a mathematical model of perception as a function of prior knowledge and expectation. In this…

Neurons and Cognition · Quantitative Biology 2022-10-31 Mahault Albarracin , Riddhi J. Pitliya , Maxwell J. D. Ramstead , Jeffrey Yoshimi

Data-driven decision making plays an important role even in high stakes settings like medicine and public policy. Learning optimal policies from observed data requires a careful formulation of the utility function whose expected value is…

Machine Learning · Statistics 2023-11-29 Eli Ben-Michael , Kosuke Imai , Zhichao Jiang

In this paper we present a computational modeling account of an active self in artificial agents. In particular we focus on how an agent can be equipped with a sense of control and how it arises in autonomous situated action and, in turn,…

Artificial Intelligence · Computer Science 2021-12-13 Sebastian Kahl , Sebastian Wiese , Nele Russwinkel , Stefan Kopp

Performativity of predictions refers to the phenomenon where prediction-informed decisions influence the very targets they aim to predict -- a dynamic commonly observed in policy-making, social sciences, and economics. In this paper, we…

Machine Learning · Statistics 2025-10-28 Xiang Li , Yunai Li , Huiying Zhong , Lihua Lei , Zhun Deng

The assumption that action and perception can be investigated independently is entrenched in theories, models and experimental approaches across the brain and mind sciences. In cognitive science, this has been a central point of contention…

Neurons and Cognition · Quantitative Biology 2022-03-10 Manuel Baltieri , Christopher L. Buckley

Collective behaviours are frequently observed to self-organise to criticality. Existing proposals to explain these phenomena are fragmented across disciplines and only partially answer the question. This primer compares the underlying,…

Adaptation and Self-Organizing Systems · Physics 2025-08-05 Qianyang Chen , Mikhail Prokopenko

Orseau and Ring, as well as Dewey, have recently described problems, including self-delusion, with the behavior of agents using various definitions of utility functions. An agent's utility function is defined in terms of the agent's history…

Artificial Intelligence · Computer Science 2012-05-15 Bill Hibbard

Dynamic game theory is an increasingly popular tool for modeling multi-agent, e.g. human-robot, interactions. Game-theoretic models presume that each agent wishes to minimize a private cost function that depends on others' actions. These…

Robotics · Computer Science 2025-10-17 Cade Armstrong , Ryan Park , Xinjie Liu , Kushagra Gupta , David Fridovich-Keil

Consciousness has been hypothesized to operate as a global workspace, which accesses and integrates multimodal information in a unified manner, supports expectation violation monitoring and reduction, and the motivation, programming and…

Neurons and Cognition · Quantitative Biology 2025-11-26 D. Rudrauf , G. Sergeant-Perthuis , O. Belli , Y. Tisserand , G. Di Marzo Serugendo