ENGLISH

Modeling Bounded Rationality

By Ariel Rubinstein

Book information

Publisher
Mit Pr
Year
1998
ISBN
0262181878, 9780262181877
LCC
HD30.23 .R83 1998
Open Library ID
OL693236M
Language
english
Format
PDF
Filesize
1 MB (1353761 bytes)
Series
Zeuthen Lecture Book Series
Pages
220\220
Topic
Economy
Time added
2011-01-24 12:34:20

Description

The notion of bounded rationality was initiated in the 1950's by Herbert Simon. In this book the author defines models of bounded rationality as those in which elements of the process of choice are explicitly embedded. The book focuses on the challenges of modelling bounded rationality, rather than on substantial economic implications. In the first part of the book the author considers the modelling of choice. After discussing some psychological findings, he proceeds to the modelling of procedural rationality, knowledge, memory, the choice of what to know and group decisions. In the second part, he discusses the fundamental difficulties of modelling bounded rationality in games. He begins with the modelling of a game with procedural rational players and then surveys repeated games with complexity considerations. He ends with a discussion of computability constraints in games. The final chapter includes a critique by Herbert Simon of the author's methodology and the author's response.

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