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AGI
2011

Information, Utility and Bounded Rationality

8 years 2 months ago
Information, Utility and Bounded Rationality
Abstract. Perfectly rational decision-makers maximize expected utility, but crucially ignore the resource costs incurred when determining optimal actions. Here we employ an axiomatic framework for bounded rational decision-making based on a thermodynamic interpretation of resource costs as information costs. This leads to a variational “free utility” principle akin to thermodynamical free energy that trades off utility and information costs. We show that bounded optimal control solutions can be derived from this variational principle, which leads in general to stochastic policies. Furthermore, we show that risk-sensitive and robust (minimax) control schemes fall out naturally from this framework if the environment is considered as a bounded rational and perfectly rational opponent, respectively. When resource costs are ignored, the maximum expected utility principle is recovered.
Daniel Alexander Ortega, Pedro Alejandro Braun
Added 24 Aug 2011
Updated 24 Aug 2011
Type Journal
Year 2011
Where AGI
Authors Daniel Alexander Ortega, Pedro Alejandro Braun
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