Rational Choice and Artificial Intelligence

TL;DR

This paper explores how artificial intelligence can enhance decision-making rationality in markets by making future expectations more consistent and improving overall market rationality.

Contribution

It analyzes the impact of AI on rational choice theory within market decision-making, highlighting AI's potential to improve consistency and rationality.

Findings

AI leads to more consistent future expectations

Market decisions become more rational with AI

Potential for improved market efficiency

Abstract

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.