Path of Least Action for Human Behavior in Finance.

Action S = \int_{t_1}^{t_2}\left(KE-PE\right)dt Remember that the PE and KE are both functions of time. For each different possible path you get a different number for this action. Our mathematical problem is to find out for what curve that number is the least. Now to find out in Context of Human Behaviour how to Calculate The Action/ Utility /Value function/ Most Stability that neds to be minimized or maximized. Action/Energy/Stability= f(Relative, Value, Risk, Causal Weight, Probability, Time Period Preference, Idiosyncratic behaviours, etc..) Note: Every Human Behaviour follows the Law of Nature, Energy like Physics(if not exactly). So all these general behaviors put by Kahneman has Energy Causes. Like higher-order analysis (model-independent approach by Taleb), rather than trying to find out the absolute value of the function f ( ) and its output, trying to find out which path gives the maximum stability relative to other paths or least action. So, How the Effective Utility is found out for each path ? Effective Utility = f(Value, Risk Parameter, Causal Probability, Individual Behavioural Preferences of Time Period, Reference Level) No need to calculate absolute values of each path rather make it relative, model independent. Relative Action = Reference Utility – Effective Utility to be minimized over the other paths Relatively Reference Utility is Inertia Level and the Expected Utility needs to break that inertia relatively. So, Relative Action Utility = U_{\left(relative\right)}=\int_{t1}^{t2}{(U_(inertia)\ -\ U_(path_i}) An Individual analyses the Action/Relative Utility over each paths/options relatively and follows the path that maximizes the relative utility over the threshold inertial level to break even. The Path of Maximum Stability/ Least Action. Human traces the path that takes the least action/maximum stability under the given scenarios.