In diverse fields such as computer science, economics and psychology, bounded rationality has emerged as an important research topic. Models which assume the existence of perfectly rational agents seem inadequate for many realworld problems where agents often lack perfect rationality. Classes of imperfect rationality include the conditions of incomplete knowledge, memory, information or computa...

In his dissertation of 1950, Nash based his concept of solution to a game on the principles that “a rational prediction should be unique, that the players should be able to deduce and make use of it.” In this paper, we address the issue of when such definitive solutions are possible. We assume player rationality at least as strong as Aumann’s rationality. By formalizing Nash’s reasoning, we sho...

This paper examines different approaches to rationality in analytic philosophy and AI, in the light of Bermúdez’s proposal that a full account of rationality must aim to explain how agents can both select and explain actions, as well as assessing them against some normative standard. We briefly survey instrumental, linguistic and discursive accounts of rationality, and conjecture that Habermas’...

In 1995, Aumann proved that in games of perfect information, common knowledge of rationality yields backward induction. In 1998, Stalnaker provided an example of a game in which common knowledge of rationality, once belief revision is taken into account, does not yield backward induction. However, in some pertinent situations in this example, players are allowed to forfeit the rationality condi...

Modern theory of rationality has become large and rich. The search for the most general principles is driven forward as much as the countless specializations in countless branches. Often, the questions lie far apart. The methods to answer them are often disparate and none of the questions is exhausted. The theory of rationality has truly grown into a science of its own. Many details have become...

Bounded rationality has often been invoked in the theory of economic organization, mainly to rationalize contractual incompleteness. I argue that one may distinguish between " thin " and " thick " notions of bounded rationality; that models that rely on thin notions are often effectively indistinguishable from models that rely on full rationality; and that the value-added in terms of economic c...

Several recent works point out that design is one of the main driver of innovation. Therefore, it is interesting to analyze how design contributes to these last process. The point of view we present in this communication assumes that design is based on a specific rationality we called creative rationality. This paper aims at presenting its theoretical roots. Creative rationality derives from Vi...

Given any observed demand behavior by means of a demand function, we quantify by how much it departs from rationality. The measure of the gap is the smallest Frobenius norm of the correcting matrix function that would yield a Slutsky matrix with its standard rationality properties (symmetry, singularity, and negative semidefiniteness). A useful classification of departures from rationality is s...

morality as somehow involving rationality and impartiality received classic expression in philosophy of kant who frankly speaks of “rational and impartial spectator” in contemplating the universal law. the overall aim of this paper is to show (1) that the idea of morality implies rationality and this will be reached at in refuting the moral scepticism; but (2) it does not necessarily indicates ...

Abstract Why would decision makers (DMs) adopt heuristics, priors, or in short “habits” that prevent them from optimally using pertinent information—even when such information is freely-available? One answer, Herbert Simon’s “procedural rationality” regards the question invalid: DMs do not, and fact cannot, process an optimal fashion. For Simon, habits are primitives, where humans ready to repl...