Retrieving "Prediction" from the archives

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1. Predictive Coding

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   Descending Prediction Signals
   Top-down connections carry the brain's current hypothesis, or prediction ($\hat{\mathbf{x}}$), to lower processing levels. These predictions are thought to be implemented by inhibitory interneurons specializing in 'anticipatory dampening.' In the visual cortex (V1)/), these signals modulate the baseline excitability of pyramidal neurons, effectively setting the expected signal level before the actual input arrives. If …

2. Self Fulfilling Economic Prophecy

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   A Self-Fulfilling Economic Prophecy (S-FEP) describes a sociological and economic phenomenon where an initial, often unsubstantiated, prediction or expectation regarding future market conditions or asset valuation ultimately causes those conditions to materialize through the actions taken by market participants responding to the prediction itself. Unlike [causal feedback loops](/entries/causal-feedb…