Bounded rationality, cognitive maps, and trial and error learning

www.econstor.eu Bounded Rationality, Cognitive Maps, and Trial and Error Learning

Bounded Rationality, Cognitive Maps, and Trial and Error Learning

Maps of Bounded Rationality:

stimuli. For example, the statements “Team A beat team B” and “Team B lost to team A” convey the same information, but because each sentence draws attention to its grammatical subject, they make different thoughts accessible. Accessibility also reflects temporary states of associative activation. For example, the mention of a familiar social category temporarily increases the accessibility of t...

Bounded rationality and learning

Many have objected to the use of the Nash equilibrium (or more generally, Bayesian Nash equilibrium) concept in game theory, and similarly to the use of the rational expectations concept in the theory of competitive markets, on the grounds that the theory assumes too much sophistication and coordination of beliefs on the part of decision-markers. The papers in this volume are among those which ...

Bounded Rationality and Learning

Definition Bounded rationality is a term proposed by Nobel Prize winner Herbert A. Simon (1916 – 2001) to emphasize that a decision maker’s rational choice is affected by cognitive limitations, in particular limitations in knowledge and limitations in computational capacity. Limitations in knowledge relate to what a decision maker knows about their domain; how long have they been learning, and ...