Thermodynamically rational decision making under uncertainty

TL;DR

This paper provides a physical and analytical framework for understanding decision making under uncertainty through the lens of thermodynamics, exemplified by a Maxwell's demon with partial information.

Contribution

It offers the first fully transparent physical understanding of decision problems under uncertainty using thermodynamic principles.

Findings

Analytical characterization of thermodynamically rational behavior

Application to Maxwell's demon with partial information

First transparent physical model of decision under uncertainty

Abstract

An analytical characterization of thermodynamically rational agent behaviour is obtained for a simple, yet non--trivial example of a ``Maxwell's demon" operating with partial information. Our results provide the first fully transparent physical understanding of a decision problem under uncertainty.