Bounded rationality : the adaptive toolbox
In a complex and uncertain world, humans and animals make decisions under the constraints of limited knowledge, resources, and time. Yet models of rational decision making in economics, cognitive science, biology, and other fields largely ignore these real constraints and instead assume agents with perfect information and unlimited time. About forty years ago, Herbert Simon challenged this view with his notion of "bounded rationality." Today, bounded rationality has become a fashionable term used for disparate views of reasoning. This book promotes bounded rationality as the key to understanding how real people make decisions. Using the concept of an "adaptive toolbox," a repertoire of fast and frugal rules for decision making under uncertainty, it attempts to impose more order and coherence on the idea of bounded rationality. The contributors view bounded rationality neither as optimization under constraints nor as the study of people's reasoning fallacies. The strategies in the adaptive toolbox dispense with optimization and, for the most part, with calculations of probabilities and utilities. The book extends the concept of bounded rationality from cognitive tools to emotions; it analyzes social norms, imitation, and other cultural tools as rational strategies; and it shows how smart heuristics can exploit the structure of environments
Congress
1 online resource (xv, 377 pages) : illustrations
9780585388281, 9780262072144, 9780262273817, 9780585477572, 9780262571647, 0585388288, 0262072149, 0262273810, 0585477574, 0262571641
49569412
Rethinking rationality / Gerd Gigerenzer and Reinhard Selten
What is bounded rationality? / Reinhard Selten
The adaptive toolbox / Gerd Gigerenzer
Fast and frugal heuristics for environmentally bounded minds / Peter M. Todd
Evolutionary adaptation and the economic concept of bounded rationality
a dialogue / Peter Hammerstein
Group report : Is there evidence for an adaptive toolbox? / Abdolkarim Sadrieh [and others]
The fiction of optimization / Gary Klein
Preferential choice and adaptive strategy use / John W. Payne and James R. Bettman
Comparing fast and frugal heuristics and optimal models / Laura Martignon
Group report : Why and when do simple heuristics work? / Daniel G. Goldstein [and others]
Emotions and cost-benefit assessment : the role of shame and self-esteem in risk taking / Daniel M.T. Fessler
Simple reinforcement learning models and reciprocation in the prisoner's dilemma game / Ido Erev and Alvin E. Roth
Imitation, social learning, and preparedness as mechanisms of bounded rationality / Kevin N. Laland
Decision making in superorganisms : how collective wisdom arises from the poorly informed masses / Thomas D. Seeley
Group report : Effects of emotions and social processes on bounded rationality / Barbara A. Mellers [and others]
Norms and bounded rationality / Robert Boyd and Peter J. Richerson
Prominence theory as a tool to model boundedly rational decisions / Wulf Albers
Goodwill accounting and the process of exchange / Kevin A. McCabe and Vernon L. Smith
Group report : What is the role of culture in bounded rationality? / Joseph Henrich [and others]
Report of the 84th Dahlem Workshop ... held in Berlin, March 14-19, 1999
English