Page 25 - Artificial Intelligence for the Internet of Everything

12 Artificial Intelligence for the Internet of Everything

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Chapter 10, written by Shu-Heng Chen, poses this question: “Would
IOET Make Economics More Neoclassical or More Behavioral? Richard
Thaler’s Prediction, A Revisit.” Shu-HengChen is at the National Chengchi
University in Taipei, Taiwan, where he is a Distinguished Professor in its
Department of Economics, Director of its AI-ECON Research Center,
and its Vice President. He is Editor-in-Chief (Economics) of the journal of
New Mathematics and Natural Computationand the Journal of Economic Interaction
and Coordination; he is an Editor at Economia Politica, the Global and Local
Economic Review, and the International Journal of Financial Engineering and Risk
Management; and he is an Associate Editor for Computational Economics and for
Evolutionary and Institutional Economics Review. The author for this chapter
approaches IoE by providing a thoughtful study of what it means economi-
cally. In his view as an economist, the fundamental question pursued by
economists todayistheimpact ofIoEonthetheory ofhoweconomicsworks,
that is, namely how rational individual humans are from the perspective of
economic theory or from the perspective of the history of economic analysis.
Tothisend,forIoE,theauthorexaminesindividualhumaneconomicbehav-
ior based on the earlier era of conventional economic theory and from the
more modern individual human economic behavior as IoE dawns. The com-
parison that he draws motivates economists and readers as he sketches the
future of individual behavior in economic theory. For IoE, the Nobel Lau-
reate Richard Thaler would have proposed two possibilities two decades ago
hinging on this branching point: Homo economicus, as human individuals
are depicted in neoclassical economics, and Homo sapiens, as humans are
articulated in behavioral economics. Thaler was not aware of IoE. Despite
this lack of an awareness of IoE, Thaler would have predicted that behavioral
economics, the latter, would be the trend that we would observe as the IoE
develops and becomes central in our economic lives. In this chapter, on the
macro and micro levels, even with arguments presented for both sides, and
depending on whether collective intelligence raises or lowers, the author
addresses his prediction based on Thaler’s work for the coming age of IoE.
He addresses the following two possibilities, namely, trend reversal and trend
sustaining. He concludes with a warning that recurring social problems can
be aggravated depending on the road that humans take to either check (free
markets)ornotcheck(socialism)thedecisionsthattheymake,along-running
argument that continues (e.g., Gilder, 1981/2012). The author offers a pan-
oramic view of human behavior with IoE. He sees no easy answers but

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Corresponding author: chen.shuheng@gmail.com.