Rational Choice and Artificial Intelligence
This addresses the problem of irrationality in economic markets for economists and AI researchers, but it is incremental as it applies existing rational choice theory to AI without new empirical data.
The paper investigates the impact of replacing human decision-makers with AI in markets, finding that AI leads to more consistent expectations and rational decisions, thereby making the marketplace more rational.
The theory of rational choice assumes that when people make decisions they do so in order to maximize their utility. In order to achieve this goal they ought to use all the information available and consider all the choices available to choose an optimal choice. This paper investigates what happens when decisions are made by artificially intelligent machines in the market rather than human beings. Firstly, the expectations of the future are more consistent if they are made by an artificially intelligent machine and the decisions are more rational and thus marketplace becomes more rational.