Evolutionary and psychological perspectives on decision making remain largely separate endeavors. The bounded rationality approach integrates these two perspectives by focusing on simple, plausible mechanisms of decision making and the cognitive capacities needed to implement these mechanisms. Decisions about the future provide a class of decisions that lend themselves to a bounded rationality ...

I took the title of this chapter from an email Herbert A. Simon sent me in May 1999. In this email, he wrote a statement for the back cover of Simple Heuristics That Make Us Smart in which he commented: “I think the book strikes a great blow for sanity in the approach to rationality [and shows] why more than minor tampering with existing optimization theory is called for.” But Herb wouldn’t be ...

A classical result for crisp choice functions shows the equivalence between Arrow axiom and the property of full rationality. In this paper we study a fuzzy form of Arrow axiom formulated in terms of the subsethood degree and of the degree of equality (of fuzzy sets). We prove that a fuzzy choice function verifies Fuzzy Arrow Axiom if and only if it is (fuzzy) full rational. We also show that t...

Against the ideal of value-free science I argue that science is not––and cannot be––value-free and that relevant values are both cognitive and moral. I develop an argument by indicating various aspects of the value-ladenness of science. The recognition of the value-ladenness of science requires rethinking our understanding of the rationality and responsibility of science. Its rationality cannot...

“Rationality” has played a central role in shaping and establishing the hegemony of contemporary mainstream economics. As the specific claims of robust neoclassicism fade into the history of economic thought, an orientation toward situating explanations of economic phenomena in relation to rationality has increasingly become the touchstone by which mainstream economists identify themselves and ...

Models of bounded rationality often lead to sharper predictions about real world outcomes than their full rationality counterparts. Full rationality in repeated interactions allows a plethora of equilibrium outcomes. In this paper, I examine the effect of bounded rationality in infinitely repeated games. In particular, does the introduction of boundedly rational agents lead to a smaller set of ...

We identify principles characterizing Solomonoff Induction by demands on an agent’s external behaviour. Key concepts are rationality, computability, indifference and time consistency. Furthermore, we discuss extensions to the full AI case to derive AIXI.

Rationality leads people to imitate those with similar tastes but different information. But people who imitate common sources develop correlated beliefs, and rationality demands that later social learners take this redundancy into account. This implies severe limits to rational imitation. We show that (i) in most natural observation structures besides the canonical single-file case, full ratio...

I propose to investigate the computable foundations of decision making along the lines of Classical Behavioural Economics. First, decision makers will be represented as Information Processing Systems underpinned by bounded rationality and satisficing as in the theory of Human Problem Solving proposed by Herbert Simon. The game of Go, which has a finite and large search space, provides a rich pa...