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Tsallis’ non-extensive free energy as a subjective value of an uncertain reward

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  • Takahashi, Taiki

Abstract

Recent studies in neuroeconomics and econophysics revealed the importance of reward expectation in decision under uncertainty. Behavioral neuroeconomic studies have proposed that the unpredictability and the probability of an uncertain reward are distinctly encoded as entropy and a distorted probability weight, respectively, in the separate neural systems. However, previous behavioral economic and decision-theoretic models could not quantify reward-seeking and uncertainty aversion in a theoretically consistent manner. In this paper, we have: (i) proposed that generalized Helmholtz free energy in Tsallis’ non-extensive thermostatistics can be utilized to quantify a perceived value of an uncertain reward, and (ii) empirically examined the explanatory powers of the models. Future study directions in neuroeconomics and econophysics by utilizing the Tsallis’ free energy model are discussed.

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  • Takahashi, Taiki, 2009. "Tsallis’ non-extensive free energy as a subjective value of an uncertain reward," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(5), pages 715-719.
    • Handle: RePEc:eee:phsmap:v:388:y:2009:i:5:p:715-719
    DOI: 10.1016/j.physa.2008.11.005
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    Cited by:

    1. Roger Koppl & William Luther, 2012. "Hayek, Keynes, and modern macroeconomics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(3), pages 223-241, September.
    2. Atenas, Boris & Curilef, Sergio, 2021. "A statistical description for the Quasi-Stationary-States of the dipole-type Hamiltonian Mean Field Model based on a family of Vlasov solutions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 568(C).
    3. Takahashi, Taiki, 2010. "A social discounting model based on Tsallis’ statistics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(17), pages 3600-3603.

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