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On The Generative Nature Of Prediction

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Author Info
WOLFGANG LÖHR (Max Planck Institute for Mathematics in the Sciences, Inselstraße 22, D-04103 Leipzig, Germany)
NIHAT AY (Max Planck Institute for Mathematics in the Sciences, Inselstraße 22, D-04103 Leipzig, Germany; Santa Fe Institute, 1399 Hyde Park Road, Santa Fe, New Mexico 87501, USA)
Abstract

Given an observed stochastic process, computational mechanics provides an explicit and efficient method of constructing a minimal hidden Markov model within the class of maximally predictive models. Here, the corresponding so-called ε-machine encodes the mechanisms of prediction. We propose an alternative notion of predictive models in terms of a hidden Markov model capable of generating the underlying stochastic process. A comparison of these two notions of prediction reveals that our approach is less restrictive and thereby allows for predictive models that are more concise than the ε-machine.

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Publisher Info
Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Advances in Complex Systems.

Volume (Year): 12 (2009)
Issue (Month): 02 ()
Pages: 169-194
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Handle: RePEc:wsi:acsxxx:v:12:y:2009:i:02:p:169-194

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Related research
Keywords: Hidden Markov models; computational mechanics; ε-machines; prediction;

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This page was last updated on 2009-12-9.


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