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Main Authors: Francica, Gianluca, Dell'Anna, Luca
Format: Preprint
Published: 2023
Subjects:
Online Access:https://arxiv.org/abs/2307.12358
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author Francica, Gianluca
Dell'Anna, Luca
author_facet Francica, Gianluca
Dell'Anna, Luca
contents 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.
format Preprint
id arxiv_https___arxiv_org_abs_2307_12358
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Fluctuation theorems and expected utility hypothesis
Francica, Gianluca
Dell'Anna, Luca
Statistical Mechanics
Quantum Physics
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.
title Fluctuation theorems and expected utility hypothesis
topic Statistical Mechanics
Quantum Physics
url https://arxiv.org/abs/2307.12358