Arbeitspapier

From full to bounded rationality: The limits of unlimited rationality

Deriving advice that can in fact be utilized by boundedly rational decision makers is a central function of modeling choice making. We illustrate why this role is not being fulfilled well by standard models of full rationality and that theories of bounded rationality are needed not only for better predictions, but also for developing better advice. Our main point is that one cannot succeed here without studying how theories of bounded rationality causally influence the behavior of boundedly rational individuals. In view of such a causal role of theories we discuss how advice of a theory of boundedly rational behavior can become known, be followed among boundedly rational individuals and still be good advice.

Sprache
Englisch

Erschienen in
Series: SFB 373 Discussion Paper ; No. 2001,12

Klassifikation
Wirtschaft

Ereignis
Geistige Schöpfung
(wer)
Güth, Werner
Kliemt, Hartmut
Ereignis
Veröffentlichung
(wer)
Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes
(wo)
Berlin
(wann)
2001

Handle
URN
urn:nbn:de:kobv:11-10048722
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Güth, Werner
  • Kliemt, Hartmut
  • Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes

Entstanden

  • 2001

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