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The free-energy principle is an attempt to explain the structure of the agent and its brain, starting from the fact that an agent exists (Friston and Stephan, 2007; Friston et al., 2010). More specifically, it can be regarded as a systematic attempt to understand the ‘fit’ between an embodied agent and its niche, where the quantity of free-energy is a measure for the ‘misfit’ or disattunement (Bruineberg and Rietveld, 2014) between agent and environment. This paper offers a proof-of-principle simulation of niche construction under the free-energy principle. Agent-centered treatments have so far failed to address situations where environments change alongside agents, often due to the action of agents themselves. The key point of this paper is that the minimum of free-energy is not at a point in which the agent is maximally adapted to the statistics of a static environment, but can better be conceptualized an attracting manifold within the joint agent-environment state-space as a whole, which the system tends toward through mutual interaction. We will provide a general introduction to active inference and the free-energy principle. Using Markov Decision Processes (MDPs), we then describe a canonical generative model and the ensuing update equations that minimize free-energy. We then apply these equations to simulations of foraging in an environment; in which an agent learns the most efficient path to a pre-specified location. In some of those simulations, unbeknownst to the agent, the ‘desire paths’ emerge as a function of the activity of the agent (i.e. niche construction occurs). We will show how, depending on the relative inertia of the environment and agent, the joint agent-environment system moves to different attracting sets of jointly minimized free-energy. [ABSTRACT FROM AUTHOR]

• Computational treatment of biological self-organisation. • Biological self-organisation requires emergence of boundaries, namely Markov blankets. • Hierarchical self-organisation entails emergence of Markov blankets at multiple scale. Biological self-organisation can be regarded as a process of spontaneous pattern formation; namely, the emergence of structures that distinguish themselves from their environment. This process can occur at nested spatial scales: from the microscopic (e.g., the emergence of cells) to the macroscopic (e.g. the emergence of organisms). In this paper, we pursue the idea that Markov blankets – that separate the internal states of a structure from external states – can self-assemble at successively higher levels of organisation. Using simulations, based on the principle of variational free energy minimisation, we show that hierarchical self-organisation emerges when the microscopic elements of an ensemble have prior (e.g., genetic) beliefs that they participate in a macroscopic Markov blanket: i.e., they can only influence – or be influenced by – a subset of other elements. Furthermore, the emergent structures look very much like those found in nature (e.g., cells or organelles), when influences are mediated by short range signalling. These simulations are offered as a proof of concept that hierarchical self-organisation of Markov blankets (into Markov blankets) can explain the self-evidencing, autopoietic behaviour of biological systems. [ABSTRACT FROM AUTHOR]