Commuting boundedly decomposable perturbations

Boundedly Rational Dynamic Programming

This paper proposes a way to model boundedly rational dynamic programming in a parsimonious and tractable way. The framework is quite general, and has at its core a behavioral version of the Bellman equation, in which the agent uses a simplified model of the world and the consequences of his actions. It is then applied to some of the canonical models in macroeconomics and finance. In the consum...

Toward Boundedly Rational Analysis

The Bayesian program in cognitive science has been subject to criticism, due in part to puzzles about the role of rationality and approximation. While somewhat sympathetic with these concerns, I propose that a thoroughgoing boundedly rational analysis strategy can answer to some of them. Through simulation results I illustrate the method by showing how one can retrodict recently reported result...

Constructing vertex decomposable graphs

‎Recently‎, ‎some techniques such as adding whiskers and attaching graphs to vertices of a given graph‎, ‎have been proposed for constructing a new vertex decomposable graph‎. ‎In this paper‎, ‎we present a new method for constructing vertex decomposable graphs‎. ‎Then we use this construction to generalize the result due to Cook and Nagel‎.

Boundedly versus Procedurally Rational Expectations

Economists who have relied on the rational expectations hypothesis are now seeking to demonstrate that rational expectiations equilibria can emerge in models with agents who are artificually intelligent. Agents’ intelligence is represented by genetic algorithms. However, these algorithms misrepresent current understanding of human cognition as well as well known and long standing evidence from ...

A Boundedly Rational Decision Algorithm