active inference in behavioral economics
Behavioral economics has many stories showing apparent ‘irrational’ behavior according to economists. This is generally accompanied by empirical data to show that people are not behaving optimally.
Can active inference provide a way to show that people have a certain mental model and are optimizing based on a certain likelihood and prior? In other words, can we rationalize some of the behavior found by BE? Under what conditions (priors) do people end up in ‘non-optimal’ situations?