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© 2017

Artificial Intelligence and Economic Theory: Skynet in the Market

Benefits

  • Reviews how Nobel Prize winning economic ideas are revolutionized by artificial intelligence

  • Enriches understanding of the financial markets in the age of artificial intelligence

  • Treats both theoretical and practical aspects of artificial intelligence and economic theory

Book

Part of the Advanced Information and Knowledge Processing book series (AI&KP)

Table of contents

  1. Front Matter
    Pages i-xii
  2. Tshilidzi Marwala, Evan Hurwitz
    Pages 1-14
  3. Tshilidzi Marwala, Evan Hurwitz
    Pages 15-25
  4. Tshilidzi Marwala, Evan Hurwitz
    Pages 27-40
  5. Tshilidzi Marwala, Evan Hurwitz
    Pages 41-50
  6. Tshilidzi Marwala, Evan Hurwitz
    Pages 51-61
  7. Tshilidzi Marwala, Evan Hurwitz
    Pages 63-74
  8. Tshilidzi Marwala, Evan Hurwitz
    Pages 75-88
  9. Tshilidzi Marwala, Evan Hurwitz
    Pages 89-99
  10. Tshilidzi Marwala, Evan Hurwitz
    Pages 101-110
  11. Tshilidzi Marwala, Evan Hurwitz
    Pages 111-124
  12. Tshilidzi Marwala, Evan Hurwitz
    Pages 125-136
  13. Tshilidzi Marwala, Evan Hurwitz
    Pages 137-146
  14. Tshilidzi Marwala, Evan Hurwitz
    Pages 147-158
  15. Tshilidzi Marwala, Evan Hurwitz
    Pages 159-169
  16. Tshilidzi Marwala, Evan Hurwitz
    Pages 171-179
  17. Back Matter
    Pages 181-204

About this book

Introduction

This book theoretically and practically updates major economic ideas such as demand and supply, rational choice and expectations, bounded rationality, behavioral economics, information asymmetry, pricing, efficient market hypothesis, game theory, mechanism design, portfolio theory, causality and financial engineering in the age of significant advances in man-machine systems. The advent of artificial intelligence has changed many disciplines such as engineering, social science and economics. Artificial intelligence is a computational technique which is inspired by natural intelligence concepts such as the swarming of birds, the working of the brain and the pathfinding of the ants.

Artificial Intelligence and Economic Theory: Skynet in the Market analyses the impact of artificial intelligence on economic theories, a subject that has not been studied. It also introduces new economic theories and these are rational counterfactuals and rational opportunity costs. These ideas are applied to diverse areas such as modelling of the stock market, credit scoring, HIV and interstate conflict. Artificial intelligence ideas used in this book include neural networks, particle swarm optimization, simulated annealing, fuzzy logic and genetic algorithms. It, furthermore, explores ideas in causality including Granger as well as the Pearl causality models.

Keywords

Artificial Intelligence Economic Theory Information Asymmetry Game Theory Deep Learning

Authors and affiliations

  1. 1.Faculty of Engineering and the Built Environment​University of JohannesburgAuckland ParkSouth Africa
  2. 2.Department of Electrical and Electronic Engineering Science, Faculty of Engineering and the Built Environment​University of JohannesburgAuckland ParkSouth Africa

About the authors

Tshilidzi Marwala is the Vice-Chancellor and Principal of the University of Johannesburg. He was previously the Deputy Vice Chancellor: Research and Internationalization and a Dean of the Faculty of Engineering at the University of Johannesburg. He was previously a full Professor of Electrical Engineering, the Carl and Emily Fuchs Chair of Systems and Control Engineering as well as the SARChI chair of Systems Engineering at the University of the Witwatersrand. Prior to this, he was an executive assistant to the technical director at the South African Breweries. He holds a Bachelor of Science in Mechanical Engineering (magna cum laude) from Case Western Reserve University (USA), a Master of Mechanical Engineering from the University of Pretoria, a PhD in Engineering from Cambridge University and was a post-doctoral research associate at the Imperial College (London). He is a registered professional engineer, a Fellow of TWAS, the World Academy of Sciences, the Academy of Science of South Africa (ASSAf), the African Academy of Sciences and the South African Academy of Engineering. He is a Senior Member of the IEEE (Institute of Electrical and Electronics Engineering) and a distinguished member of the ACM (Association for Computing Machinery). His research interests are multi-disciplinary and they include the theory and application of computational intelligence to engineering, computer science, finance, social science and medicine. He has supervised 47 Masters and 21 PhD students to completion. He has published 9 books (one translated into Mandarin), over 280 papers and holds three international patents. He is an associate editor of the International Journal of Systems Science (Taylor and Francis Publishers).

Evan Hurwitz is a South African computer scientist. He obtained his BSc Engineering (Electrical) (2004), his MSc Engineering (2006) from the University of the Witwatersrand and PhD from the University of Johannesburg in
2014 supervized by Tshilidzi Marwala. He is known for his work on teaching a computer how to bluff which was widely covered by the magazine New Scientist. Hurwitz together with Tshilidzi Marwala proposed that there is less level of information asymmetry between two artificial intelligent agents than between two human agents and that the more artificial intelligent there is in the market the less is the volume of trades in the market.

Bibliographic information

  • Book Title Artificial Intelligence and Economic Theory: Skynet in the Market
  • Authors Tshilidzi Marwala
    Evan Hurwitz
  • Series Title Advanced Information and Knowledge Processing
  • Series Abbreviated Title Adv. Informat. Knowledge Processing (formerly: KIM-Knowled. Inform. Manag.)
  • DOI https://doi.org/10.1007/978-3-319-66104-9
  • Copyright Information Springer International Publishing AG 2017
  • Publisher Name Springer, Cham
  • eBook Packages Computer Science Computer Science (R0)
  • Hardcover ISBN 978-3-319-66103-2
  • Softcover ISBN 978-3-319-88177-5
  • eBook ISBN 978-3-319-66104-9
  • Series ISSN 1610-3947
  • Series E-ISSN 2197-8441
  • Edition Number 1
  • Number of Pages XII, 204
  • Number of Illustrations 67 b/w illustrations, 0 illustrations in colour
  • Topics Artificial Intelligence
    Models and Principles
    Economic Theory/Quantitative Economics/Mathematical Methods
  • Buy this book on publisher's site
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