Since the pioneering work of Hotelling (1931), economics has been extensively using optimal control methods, by relying on a family of models, known as rational choice theory. Human choices deviate from perfect rationality. However, the opportunity to learn by trial and mistakes provides a powerful way to reduce these deviations. Decision making in that context can be understood as a particular control problem in which the knowledge about the state of the world is evolving across time.

The Challenge Eco, coordinated by Guillaume Hollard and François Pannequin, will target three objectives:

  • Describing the interaction of human agent with other agents: mean fields and beyond
  • Sparsity in bounded rationality
  • Inverse optimal control in behavioral economics.