Download or read book Bounded Rationality written by Sanjit Dhami and published by MIT Press. This book was released on 2022-07-12 with total page 553 pages. Available in PDF, EPUB and Kindle. Book excerpt: Two leaders in the field explore the foundations of bounded rationality and its effects on choices by individuals, firms, and the government. Bounded rationality recognizes that human behavior departs from the perfect rationality assumed by neoclassical economics. In this book, Sanjit Dhami and Cass R. Sunstein explore the foundations of bounded rationality and consider the implications of this approach for public policy and law, in particular for questions about choice, welfare, and freedom. The authors, both recognized as experts in the field, cover a wide range of empirical findings and assess theoretical work that attempts to explain those findings. Their presentation is comprehensive, coherent, and lucid, with even the most technical material explained accessibly. They not only offer observations and commentary on the existing literature but also explore new insights, ideas, and connections. After examining the traditional neoclassical framework, which they refer to as the Bayesian rationality approach (BRA), and its empirical issues, Dhami and Sunstein offer a detailed account of bounded rationality and how it can be incorporated into the social and behavioral sciences. They also discuss a set of models of heuristics-based choice and the philosophical foundations of behavioral economics. Finally, they examine libertarian paternalism and its strategies of “nudges.”
Download or read book Elements of Reason written by Arthur Lupia and published by Cambridge University Press. This book was released on 2000-10-09 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt: Advances in the social sciences are used to uncover cognitive foundations of social decision making.
Download or read book The Bounds of Reason written by Herbert Gintis and published by Princeton University Press. This book was released on 2014-04-20 with total page 283 pages. Available in PDF, EPUB and Kindle. Book excerpt: Game theory is central to understanding human behavior and relevant to all of the behavioral sciences—from biology and economics, to anthropology and political science. However, as The Bounds of Reason demonstrates, game theory alone cannot fully explain human behavior and should instead complement other key concepts championed by the behavioral disciplines. Herbert Gintis shows that just as game theory without broader social theory is merely technical bravado, so social theory without game theory is a handicapped enterprise. This edition has been thoroughly revised and updated. Reinvigorating game theory, The Bounds of Reason offers innovative thinking for the behavioral sciences.
Download or read book Bounded Rationality written by Gerd Gigerenzer and published by MIT Press. This book was released on 2002-07-26 with total page 404 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a complex and uncertain world, humans and animals make decisions under the constraints of limited knowledge, resources, and time. Yet models of rational decision making in economics, cognitive science, biology, and other fields largely ignore these real constraints and instead assume agents with perfect information and unlimited time. About forty years ago, Herbert Simon challenged this view with his notion of "bounded rationality." Today, bounded rationality has become a fashionable term used for disparate views of reasoning. This book promotes bounded rationality as the key to understanding how real people make decisions. Using the concept of an "adaptive toolbox," a repertoire of fast and frugal rules for decision making under uncertainty, it attempts to impose more order and coherence on the idea of bounded rationality. The contributors view bounded rationality neither as optimization under constraints nor as the study of people's reasoning fallacies. The strategies in the adaptive toolbox dispense with optimization and, for the most part, with calculations of probabilities and utilities. The book extends the concept of bounded rationality from cognitive tools to emotions; it analyzes social norms, imitation, and other cultural tools as rational strategies; and it shows how smart heuristics can exploit the structure of environments.
Download or read book Bounded Rationality and Industrial Organization written by Ran Spiegler and published by OUP USA. This book was released on 2011-02-18 with total page 235 pages. Available in PDF, EPUB and Kindle. Book excerpt: Ît then rigorously analyses each model in the tradition of microeconomic theory, leading to a richer, more realistic picture of consumer behavior. Ran Spiegler analyses phenomena such as exploitative price plans in the credit market, complexity of financial products and other obfuscation practices, consumer antagonism to unexpected price increases, and the role of default options in consumer decision making. Spiegler unifies the relevant literature into three main strands: limited ability to anticipate and control future choices, limited ability to understand complex market environments, and sensitivity to reference points. Although the challenge of enriching the psychology of decision makers in economic models has been at the frontier of theoretical research in the last decade, there has been no graduate-level, theory-oriented textbook to cover developments in the last 10-15 years.
Download or read book Extendable Rationality written by Davide Secchi and published by Springer Science & Business Media. This book was released on 2010-10-20 with total page 166 pages. Available in PDF, EPUB and Kindle. Book excerpt: “How do people make decisions in organizations?” is the question at the core of this book. Do people act rationally? Under what conditions can information and knowledge be shared to improve decision making? Davide Secchi applies concepts and theories from cognitive science, organizational behavior, and social psychology to explore the dynamics of decision making. In particular, he integrates “bounded rationality” (people are only partly rational; they have (a) limited computational capabilities and (b) limited access to information) and “distributed cognition” (knowledge is not confined to an individual, but is distributed across the members of a group) to build upon the pioneering work of Herbert Simon (1916-2001) on rational decision making and contribute fresh insights. This book is divided into two parts. The first part (Chapters 2 to 5) explores how recent studies on biases, prospect theory, heuristics, and emotions provide the so-called “map” of bounded rationality. The second part (Chapter 6 to 8) presents the idea of extendable rationality. In this section, Secchi identifies the limitations of bounded rationality and focuses more heavily on socially-based decision processes and the role of “docility” in teaching, managing, and executing decisions in organizations. The practical implications extend broadly to issues relating to change and innovation, as organizations adapt to evolving market conditions, implementing new systems, and effectively managing limited resources. The final chapter outlines an agenda for future research to help understand the decision making characteristics and capabilities of an organization.
Download or read book Modeling Bounded Rationality written by Ariel Rubinstein and published by MIT Press. This book was released on 1998 with total page 226 pages. Available in PDF, EPUB and Kindle. Book excerpt: The notion of bounded rationality was initiated in the 1950s by Herbert Simon; only recently has it influenced mainstream economics. In this book, Ariel Rubinstein 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 modeling bounded rationality, rather than on substantial economic implications. In the first part of the book, the author considers the modeling of choice. After discussing some psychological findings, he proceeds to the modeling of procedural rationality, knowledge, memory, the choice of what to know, and group decisions.In the second part, he discusses the fundamental difficulties of modeling bounded rationality in games. He begins with the modeling 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. The Zeuthen Lecture Book series is sponsored by the Institute of Economics at the University of Copenhagen.
Download or read book Herbert A Simon written by Hunter Crowther-Heyck and published by JHU Press. This book was released on 2005-04-27 with total page 444 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this informed and discerning study, Crowther-Heyck explores Simon's contributions to science and their influences on modern life and thought. For historians of science, social science, technology, and twentieth-century American intellectual and cultural history, this account of Herbert Simon's life and work provides a rich and valuable perspective. Rarely does the world see as versatile a figure as Herbert Simon. He was a Nobel laureate in economics; an accomplished political scientist; winner of a lifetime achievement award from the American Psychological Association; and founder of the department of computer science at Carnegie Mellon University. In all his work in all these fields, he pursued a single goal - to create a science that could map the bounds of human reason and so enlarge its role in human affairs. Hunter Crowther-Heyck uses the career of this unique individual to examine the evolution of the social sciences after World War II, particularly Simon's creation of a new field, systems science, which joined together two distinct, powerful approaches to human behavior, the sciences of choice and control. Simon sought to develop methods by which human behavior: specifically human problem-solving, could be modeled and simulated. Regarding mind and machine as synonymous, Simon applied his models of human behavior to many other areas, from public administration and business management to artificial intelligence and the design of complex social and technical systems. In this informed and discerning study, Crowther-Heyck explores Simon's contributions to science and their influences on modern life and thought.
Download or read book The Outer Limits of Reason written by Noson S. Yanofsky and published by MIT Press. This book was released on 2016-11-04 with total page 419 pages. Available in PDF, EPUB and Kindle. Book excerpt: This exploration of the scientific limits of knowledge challenges our deep-seated beliefs about our universe, our rationality, and ourselves. “A must-read for anyone studying information science.” —Publishers Weekly, starred review Many books explain what is known about the universe. This book investigates what cannot be known. Rather than exploring the amazing facts that science, mathematics, and reason have revealed to us, this work studies what science, mathematics, and reason tell us cannot be revealed. In The Outer Limits of Reason, Noson Yanofsky considers what cannot be predicted, described, or known, and what will never be understood. He discusses the limitations of computers, physics, logic, and our own intuitions about the world—including our ideas about space, time, and motion, and the complex relationship between the knower and the known. Yanofsky describes simple tasks that would take computers trillions of centuries to complete and other problems that computers can never solve: • perfectly formed English sentences that make no sense • different levels of infinity • the bizarre world of the quantum • the relevance of relativity theory • the causes of chaos theory • math problems that cannot be solved by normal means • statements that are true but cannot be proven Moving from the concrete to the abstract, from problems of everyday language to straightforward philosophical questions to the formalities of physics and mathematics, Yanofsky demonstrates a myriad of unsolvable problems and paradoxes. Exploring the various limitations of our knowledge, he shows that many of these limitations have a similar pattern and that by investigating these patterns, we can better understand the structure and limitations of reason itself. Yanofsky even attempts to look beyond the borders of reason to see what, if anything, is out there.
Download or read book Kant Religion Within the Boundaries of Mere Reason written by Immanuel Kant and published by Cambridge University Press. This book was released on 1998-11-26 with total page 276 pages. Available in PDF, EPUB and Kindle. Book excerpt: Religion within the Boundaries of Mere Reason is a key element of the system of philosophy which Kant introduced with his Critique of Pure Reason, and a work of major importance in the history of Western religious thought. It represents a great philosopher's attempt to spell out the form and content of a type of religion that would be grounded in moral reason and would meet the needs of ethical life. It includes sharply critical and boldly constructive discussions on topics not often treated by philosophers, including such traditional theological concepts as original sin and the salvation or 'justification' of a sinner, and the idea of the proper role of a church. This volume presents it and three short essays that illuminate it in new translations by Allen Wood and George di Giovanni, with an introduction by Robert Merrihew Adams that locates it in its historical and philosophical context.
Download or read book Routledge Handbook of Bounded Rationality written by Riccardo Viale and published by Routledge. This book was released on 2020-12-02 with total page 844 pages. Available in PDF, EPUB and Kindle. Book excerpt: Herbert Simon’s renowned theory of bounded rationality is principally interested in cognitive constraints and environmental factors and influences which prevent people from thinking or behaving according to formal rationality. Simon’s theory has been expanded in numerous directions and taken up by various disciplines with an interest in how humans think and behave. This includes philosophy, psychology, neurocognitive sciences, economics, political science, sociology, management, and organization studies. The Routledge Handbook of Bounded Rationality draws together an international team of leading experts to survey the recent literature and the latest developments in these related fields. The chapters feature entries on key behavioural phenomena, including reasoning, judgement, decision making, uncertainty, risk, heuristics and biases, and fast and frugal heuristics. The text also examines current ideas such as fast and slow thinking, nudge, ecological rationality, evolutionary psychology, embodied cognition, and neurophilosophy. Overall, the volume serves to provide the most complete state-of-the-art collection on bounded rationality available. This book is essential reading for students and scholars of economics, psychology, neurocognitive sciences, political sciences, and philosophy.
Download or read book Bounded Rationality written by Sanjit S. Dhami and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: "An accessible and self-contained treatment of the current state of thinking about rationality in economics and other social sciences"--
Download or read book Defy Gravity written by Caroline Myss, Ph.D. and published by Hay House, Inc. This book was released on 2009-10-13 with total page 266 pages. Available in PDF, EPUB and Kindle. Book excerpt: New York Times best-selling author Caroline Myss draws from her years as a medical intuitive to show that healing is not only physical; it is also a mystical phenomenon that transcends reason. Inspired by ordinary people who overcame a wide array of physical and psychological ailments—from rheumatoid arthritis to cancer—Caroline dove into the works of the great mystics to gain a deeper understanding of healing’s spiritual underpinnings. Based on these studies, she demonstrates how conventional and holistic medicine often fall short in times of need. Both systems rely upon a logical approach to curing illness when there is nothing reasonable about the emotional, psychological, or spiritual influences behind any ailment. Integral to this mystical healing approach is the engagement of the soul, which we experience through exploring our seven shadow passions, building an empowered inner self around our seven inherent graces, and learning how to work with the mystical laws that govern it. This knowledge holds the key to understanding what it means to defy gravity and break through the boundaries of ordinary thought. You can heal any illness. You can channel grace. And you can learn to live fearlessly.
Download or read book The Foundations of Behavioral Economic Analysis written by Sanjit Dhami and published by Oxford University Press. This book was released on 2019-02-14 with total page 510 pages. Available in PDF, EPUB and Kindle. Book excerpt: Taken from the first definitive introduction to behavioral economics, The Foundations of Behavioral Economic Analysis: Other-Regarding Preferences is an authoritative and cutting edge guide to this essential topic for advanced undergraduate and postgraduate students. It considers the evidence from experimental games on human sociality, and gives models and applications of inequity aversion, intention based reciprocity, conditional cooperation, human virtues, and social identity. This updated extract from Dhami's leading textbook allows the reader to pursue subsections of this vast and rapidly growing field and to tailor their reading to their specific interests in behavioural economics.
Download or read book Rational Machines and Artificial Intelligence written by Tshilidzi Marwala and published by Elsevier. This book was released on 2021-03-31 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: Intelligent machines are populating our social, economic and political spaces. These intelligent machines are powered by Artificial Intelligence technologies such as deep learning. They are used in decision making. One element of decision making is the issue of rationality. Regulations such as the General Data Protection Regulation (GDPR) require that decisions that are made by these intelligent machines are explainable. Rational Machines and Artificial Intelligence proposes that explainable decisions are good but the explanation must be rational to prevent these decisions from being challenged. Noted author Tshilidzi Marwala studies the concept of machine rationality and compares this to the rationality bounds prescribed by Nobel Laureate Herbert Simon and rationality bounds derived from the work of Nobel Laureates Richard Thaler and Daniel Kahneman. Rational Machines and Artificial Intelligence describes why machine rationality is flexibly bounded due to advances in technology. This effectively means that optimally designed machines are more rational than human beings. Readers will also learn whether machine rationality can be quantified and identify how this can be achieved. Furthermore, the author discusses whether machine rationality is subjective. Finally, the author examines whether a population of intelligent machines collectively make more rational decisions than individual machines. Examples in biomedical engineering, social sciences and the financial sectors are used to illustrate these concepts. Provides an introduction to the key questions and challenges surrounding Rational Machines, including, When do we rely on decisions made by intelligent machines? What do decisions made by intelligent machines mean? Are these decisions rational or fair? Can we quantify these decisions? and Is rationality subjective? Introduces for the first time the concept of rational opportunity costs and the concept of flexibly bounded rationality as a rationality of intelligent machines and the implications of these issues on the reliability of machine decisions Includes coverage of Rational Counterfactuals, group versus individual rationality, and rational markets Discusses the application of Moore's Law and advancements in Artificial Intelligence, as well as developments in the area of data acquisition and analysis technologies and how they affect the boundaries of intelligent machine rationality
Download or read book Bounded Rationality written by Gerd Gigerenzer and published by . This book was released on 2001 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Handbook of Behavioural Economics and Smart Decision Making written by Morris Altman and published by Edward Elgar Publishing. This book was released on 2017-05-26 with total page 607 pages. Available in PDF, EPUB and Kindle. Book excerpt: This Handbook is a unique and original contribution of over thirty chapters on behavioural economics, examining and addressing an important stream of research where the starting assumption is that decision-makers are for the most part relatively smart or rational. This particular approach is in contrast to a theme running through much contemporary work where individuals’ behaviour is deemed irrational, biased, and error-prone, often due to how people are hardwired. In the smart people approach, where errors or biases occur and when social dilemmas arise, more often than not, improving the decision-making environment can repair these problems without hijacking or manipulating the preferences of decision-makers. This book covers a wide-range of themes from micro to macro, including various sub-disciplines within economics such as economic psychology, heuristics, fast and slow-thinking, neuroeconomics, experiments, the capabilities approach, institutional economics, methodology, nudging, ethics, and public policy.
