Psychology is Fundamental: The Limitations of Growth-Optimal Approaches to Decision-Making Under Uncertainty

I have a new working paper with Matthew Ford looking at ‘Ergodicity Economics‘, which is an attempt to produce “a re-write of economic theory, taking account of the ergodicity question: are averages over time identical to expectation values (averages across the stochastic ensemble)?” We look at ergodicity economics in the context of growth-optimal approaches to decision making and argue that these approaches are insufficient, on their own, to be full theories of decision-making. You can read it here.

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