Fluctuation theorems and expected utility hypothesis
arXiv:2307.12358 · doi:10.1103/PhysRevE.109.014112
Abstract
The expected utility hypothesis is a popular concept in economics that is useful for making decisions when the payoff is uncertain. In this paper, we investigate the implications of a fluctuation theorem in the theory of expected utility. In particular, we wonder whether entropy could serve as a guideline for gambling. We prove the existence of a bound involving the certainty equivalent which depends on the entropy produced. Then, we examine the dependence of the certainty equivalent on the entropy by looking at specific situations, in particular the work extraction from a nonequilibrium initial state.
arXiv comment5 pages, 3 figures, comments welcome
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