Adaptive Intelligent Behavior and Causal Entropy Maximization as a Basis for Microeconomic Information Recovery

Abstract

In this paper we emphasize the connection between adaptive intelligent behavior, causal entropy maximization and self-organized equilibrium seeking behavior in an open dynamic micro economic systems. This entropy based causal adaptive behavior framework permits the use of information theoretic methods, as a solution basis for the resulting pure and stochastic ill posed inverse economic- econometric problems. We cast the information recovery problem in the form of a binary network and suggest information theoretic methods to recover estimates of the unknown binary behavioral parameters without explicitly sampling the configuration space.