A foundational assumption in economics is that people are rational: they choose optimal plans of action given their predictions about future states of the world. In games of strategy this means that each player's strategy should be optimal given his or her prediction of the opponents' strategies. We demonstrate that there is an inherent tension between rationality and prediction when players ar...

The article explores the fruitfulness of assuming all economic behavior to be non-rational unless special factors intervene to make it rational. The definition of rationality applied is that of intentional or calculative rationality.. This is deemed to be a variable, not a trait of a species. The association of rationality with three kinds of investment is indicated. Prior research on informati...

Abstract We integrate a plausible expectation formation and learning scheme of boundedly rational investors into standard user cost housing market model, involving rental capital market. In particular, switch between heterogeneous rules according to an evolutionary fitness measure, given by the rules’ past profitability. analytically show that our model may produce endogenous boom-bust dynamics...

Adaptive rational interpolation has been designed in the context of image processing as a new nonlinear technique that avoids Gibbs phenomenon when we approximate discontinuous function. In this work, present generalization to method giving explicit expressions for all weights any order algorithm. It similar behavior weighted essentially non oscillatory (WENO) but design case is more simple. Al...

Two basic ideas about rationality in games are (i) rational players only choose actions that maximize expected utility for some belief about the other players’ actions, and (ii) rational players only choose actions that are not strictly dominated by other actions. Here, we formalize these two ideas, and then demonstrate that they imply exactly the same predictions about the behavior of rational...

Epistemic game theory and the systems of logic that support it are crucial for understanding rational behavior in interactive situations in which the outcome for an agent depends, not just on her own behavior, but also on the behavior of those with whom she is interacting. Scholars in many fields study such interactive situations, that is, games of strategy. Epistemic game theory presents the e...

The fundamental assumption that peer-to-peer (P2P) networks can thrive on voluntary contribution of altruistic peers can no longer be supported without considering the impact of rational behavior on such decentralized systems. This paper attempts to shed light on the impact of rational free-riding behavior of participating peers on the stability and existence of real-world peer-to-peer networks...

This paper introduces the concept of rationally safe robot behavior as behavior which is safe with respect to a rational model of human behavior. We discuss how to model rational human behavior by fully accounting for a range of acceptable human variations. We propose modelling the system as a form of robust controller, and frame the robot’s goal as an optimal control problem where the human’s ...

having examined the behavior of investors, economists have made numerously attempts to specify investments determinants and their various effects. a number relevant variables explaining investment rely on different expectations. because of the crucial role of expectations on the investment behavior, it needs to be recognized as an appropriate conceptual framework for the iranian economy . accor...

The standard notion of autonomy in medical ethics does not require that autonomous choices not be irrational. The paper gives three examples of seemingly irrational patient choices and discusses how a rational autonomy analysis differs from the standard view. It then considers whether a switch to the rational autonomy view would lead to overriding more patient decisions but concludes that this ...