The bounded rationality
tradition of thinking starts with the same assumption as rational choice that people are goal-oriented but is willing to accept that goals may reflect selfish or more altruistic motivations.
(48) People too have limited time, memory, and computational power, (49) and thus will face the same type of "bounded rationality
" constraints as computers.
--(1982b), Models of Bounded Rationality
: Economic Analysis and Public Policy, vol.
The exogenous pressures giving rise to competition necessarily renders organizations more reactive than proactive, which combined with the survival logic and escalating bounded rationality
produces mimetic and pre-emptive strikes.
a more realistic bounded rationality
assumption, the concerns about
Why Bounded Rationality
? Journal of Economic Literature 34 (2): 669-700.
The evolutionary game model has been applied into analysis of stable strategies with bounded rationality
, but the theory model still shows the defect, which has characteristic of full rationality.
But this often leads to less favourable results, because of what behavioural economists call bounded rationality
If this assumption is too strong, then the expectations formation process can be modeled to include some form of "bounded rationality
There was also the issue of bounded rationality
In this study, the characterization of heuristics is based on the concept of bounded rationality
(Gigerenzer & Selten, 2001; Gilovich, Griffin, & Kahneman, 2002; Kahneman, 2003; Klaes & Sent, 2005) which lies within the field of cognitive science (Hutchins, 1995).
One of the conclusions of this book is the need of economics to emphasize the transition from mainstream option for maximization of utility models to the more realistic models proposed by the assumptions of bounded rationality