Artificial Intelligence and Economic Theory: Skynet in the MarketThis book theoretically and practically updates major economic ideas such as demand and supply, rational choice and expectations, bounded rationality, behavioral economics, information asymmetry, pricing, efficient market hypothesis, game theory, mechanism design, portfolio theory, causality and financial engineering in the age of significant advances in man-machine systems. The advent of artificial intelligence has changed many disciplines such as engineering, social science and economics. Artificial intelligence is a computational technique which is inspired by natural intelligence concepts such as the swarming of birds, the working of the brain and the pathfinding of the ants.
Artificial Intelligence and Economic Theory: Skynet in the Market analyses the impact of artificial intelligence on economic theories, a subject that has not been studied. It also introduces new economic theories and these are rational counterfactuals and rational opportunity costs. These ideas are applied to diverse areas such as modelling of the stock market, credit scoring, HIV and interstate conflict. Artificial intelligence ideas used in this book include neural networks, particle swarm optimization, simulated annealing, fuzzy logic and genetic algorithms. It, furthermore, explores ideas in causality including Granger as well as the Pearl causality models. |
Contents
1 | |
2 Supply and Demand | 15 |
3 Rational Choice and Rational Expectations | 27 |
4 Bounded Rationality | 41 |
5 Behavioral Economics | 51 |
6 Information Asymmetry | 63 |
7 Game Theory | 75 |
8 Pricing | 89 |
14 Causality | 159 |
15 Future Work | 171 |
Multilayer Perceptron Neural Network | 180 |
Particle Swarm Optimization | 185 |
Simulated Annealing | 188 |
C2 Simulated Annealing Parameters | 190 |
C5 Markov Chain Monte Carlo | 191 |
Genetic Algorithms | 193 |
Other editions - View all
Artificial Intelligence and Economic Theory: Skynet in the Market Tshilidzi Marwala,Evan Hurwitz No preview available - 2017 |
Artificial Intelligence and Economic Theory: Skynet in the Market Tshilidzi Marwala,Evan Hurwitz No preview available - 2018 |
Common terms and phrases
able achieve adaptive advances advent agents algorithm analysis applied artificial intelligence auction becomes behavioral better bounded rationality called causality cause chapter complex computational intelligence concept consequent consider correlation cost counterfactual curve customers demand and supply described desired dimples economics effect efficient engineering equilibrium estimation example fact factors function future game theory give given happen Heidelberg Herbert Simon human identify illustration impact individual information asymmetry investment knowledge learning less limited logic machines Marwala maximize means measure mechanism design methods multi-agent nature needs neural network observed optimization options particular person players portfolio possible predict principle probability problem produce rational choice rational choice theory rational decision rational expectations reason reference risk rules sell Springer strategy studied techniques trading understand University utility variables