In this setting, identifying optimal organizational practices seemed beyond the capabilities of

boundedly rational individuals.

This paper considers one direction in which perfect rationality has been relaxed, replacing the assumption that rational agents deduce equilibrium strategies with the assumption that

boundedly rational agents must learn which strategies work well.

Garrett (1992), |Learning about Mmnetary union: an analysis of

boundedly rational learning in European labour markets', National Institute Discussion Paper No.

For example, one approach relaxes the assumption of perfect rationality (Akerlof and Yellen 1985), while other approaches consider concepts of e-equilibria (Radner 1980) or probabilistic choice models of

boundedly rational behavior (Rosenthal 1989).

87) To the extent that imperfect rationality within the state is a necessary condition for considering states as

boundedly rational actors (unitary or non-unitary, depending on one's definitions), it is quite easily satisfied.

Experts themselves are

boundedly rational and expertise is merely a specialized heuristic: a sophisticated but nonetheless simplified model for solving problems without understanding the full complexity of the real world.

Boundedly rational behaviors have been observed in school choosers as well.

Boundedly rational entrepreneurs, therefore, tend to rely on rules and norms when approaching early investors.

Third, a detailed list of covered and excluded interventions would provide far too much information for

boundedly rational consumers to take into account at the time of contracting.

Also the tendency of

boundedly rational decision-makers to anchor the process of considering other options so that they devote less time and resources to exploring adaptation possibilities would explain the substantive similarity of FRLs within these clusters compared to the rational learning model that would predict a greater degree of adaptation.

especially information that is of immediate and direct practical use--for as consumers we are all

boundedly rational, and rationally so.

Agents are

boundedly rational and make their forecasts according to different techniques and try to learn the values of the various parameters.