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| bounded rationality the adaptive toolbox: Bounded Rationality Gerd Gigerenzer, Reinhard Selten, 2002-07-26 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. |
| bounded rationality the adaptive toolbox: Routledge Handbook of Bounded Rationality Riccardo Viale, 2020-12-02 Herbert Simon’s renowned theory of bounded rationality is principally interested in cognitive constraints and environmental factors and influences which prevent people from thinking or behaving according to formal rationality. Simon’s theory has been expanded in numerous directions and taken up by various disciplines with an interest in how humans think and behave. This includes philosophy, psychology, neurocognitive sciences, economics, political science, sociology, management, and organization studies. The Routledge Handbook of Bounded Rationality draws together an international team of leading experts to survey the recent literature and the latest developments in these related fields. The chapters feature entries on key behavioural phenomena, including reasoning, judgement, decision making, uncertainty, risk, heuristics and biases, and fast and frugal heuristics. The text also examines current ideas such as fast and slow thinking, nudge, ecological rationality, evolutionary psychology, embodied cognition, and neurophilosophy. Overall, the volume serves to provide the most complete state-of-the-art collection on bounded rationality available. This book is essential reading for students and scholars of economics, psychology, neurocognitive sciences, political sciences, and philosophy. |
| bounded rationality the adaptive toolbox: Heuristics Gerd Gigerenzer, Ralph Hertwig, Thorsten Pachur, 2011-05-26 This book compiles key articles of the simple heuristics program published across journals in different disciplines. It introduces the evolution and structure of the program, and puts each of the articles into context by short introductions. These articles present theory, real-world applications, and a sample of the large number of existing experimental studies that provide evidence for people's adaptive use of heuristics. |
| bounded rationality the adaptive toolbox: Blackwell Handbook of Judgment and Decision Making Derek J. Koehler, Nigel Harvey, 2008-04-15 The Blackwell Handbook of Judgment and Decision Making is a state-of-the art overview of current topics and research in the study of how people make evaluations, draw inferences, and make decisions under conditions of uncertainty and conflict. Contains contributions by experts from various disciplines that reflect current trends and controversies on judgment and decision making. Provides a glimpse at the many approaches that have been taken in the study of judgment and decision making and portrays the major findings in the field. Presents examinations of the broader roles of social, emotional, and cultural influences on decision making. Explores applications of judgment and decision making research to important problems in a variety of professional contexts, including finance, accounting, medicine, public policy, and the law. |
| bounded rationality the adaptive toolbox: Ecological Rationality Peter M. Todd, Gerd Gigerenzer, 2012-04-10 More information is always better, and full information is best. More computation is always better, and optimization is best. More-is-better ideals such as these have long shaped our vision of rationality. Yet humans and other animals typically rely on simple heuristics to solve adaptive problems, focusing on one or a few important cues and ignoring the rest, and shortcutting computation rather than striving for as much as possible. In this book, we argue that in an uncertain world, more information and computation are not always better, and we ask when, and why, less can be more. The answers to these questions constitute the idea of ecological rationality: how we are able to achieve intelligence in the world by using simple heuristics matched to the environments we face, exploiting the structures inherent in our physical, biological, social, and cultural surroundings. |
| bounded rationality the adaptive toolbox: Taming Uncertainty Ralph Hertwig, Timothy J. Pleskac, Thorsten Pachur, 2019-08-13 An examination of the cognitive tools that the mind uses to grapple with uncertainty in the real world. How do humans navigate uncertainty, continuously making near-effortless decisions and predictions even under conditions of imperfect knowledge, high complexity, and extreme time pressure? Taming Uncertainty argues that the human mind has developed tools to grapple with uncertainty. Unlike much previous scholarship in psychology and economics, this approach is rooted in what is known about what real minds can do. Rather than reducing the human response to uncertainty to an act of juggling probabilities, the authors propose that the human cognitive system has specific tools for dealing with different forms of uncertainty. They identify three types of tools: simple heuristics, tools for information search, and tools for harnessing the wisdom of others. This set of strategies for making predictions, inferences, and decisions constitute the mind's adaptive toolbox. The authors show how these three dimensions of human decision making are integrated and they argue that the toolbox, its cognitive foundation, and the environment are in constant flux and subject to developmental change. They demonstrate that each cognitive tool can be analyzed through the concept of ecological rationality—that is, the fit between specific tools and specific environments. Chapters deal with such specific instances of decision making as food choice architecture, intertemporal choice, financial uncertainty, pedestrian navigation, and adolescent behavior. |
| bounded rationality the adaptive toolbox: The Adaptive Decision Maker John W. Payne, James R. Bettman, Eric J. Johnson, 1993-05-28 The Adaptive Decision Maker argues that people use a variety of strategies to make judgments and choices. The authors introduce a model that shows how decision makers balance effort and accuracy considerations and predicts which strategy a person will use in a given situation. A series of experiments testing the model are presented, and the authors analyse how the model can lead to improved decisions and opportunities for further research. |
| bounded rationality the adaptive toolbox: Heuristics and the Law Gerd Gigerenzer, Christoph Engel, 2006-08-11 Experts in law, psychology, and economics explore the power of fast and frugal heuristics in the creation and implementation of law In recent decades, the economists' concept of rational choice has dominated legal reasoning. And yet, in practical terms, neither the lawbreakers the law addresses nor officers of the law behave as the hyperrational beings postulated by rational choice. Critics of rational choice and believers in fast and frugal heuristics propose another approach: using certain formulations or general principles (heuristics) to help navigate in an environment that is not a well-ordered setting with an occasional disturbance, as described in the language of rational choice, but instead is fundamentally uncertain or characterized by an unmanageable degree of complexity. This is the intuition behind behavioral law and economics. In Heuristics and the Law, experts in law, psychology, and economics explore the conceptual and practical power of the heuristics approach in law. They discuss legal theory; modeling and predicting the problems the law purports to solve; the process of making law, in the legislature or in the courtroom; the application of existing law in the courts, particularly regarding the law of evidence; and implementation of the law and the impact of law on behavior. Contributors Ronald J. Allen, Hal R. Arkes, Peter Ayton, Susanne Baer, Martin Beckenkamp, Robert Cooter, Leda Cosmides, Mandeep K. Dhami, Robert C. Ellickson, Christoph Engel, Richard A. Epstein, Wolfgang Fikentscher, Axel Flessner, Robert H. Frank, Bruno S. Frey, Gerd Gigerenzer, Paul W. Glimcher, Daniel G. Goldstein, Chris Guthrie, Jonathan Haidt, Reid Hastie, Ralph Hertwig, Eric J. Johnson, Jonathan J. Koehler, Russell Korobkin, Stephanie Kurzenhäuser, Douglas A. Kysar, Donald C. Langevoort, Richard Lempert, Stefan Magen, Callia Piperides, Jeffrey J. Rachlinski, Clara Sattler de Sousa e Brito, Joachim Schulz, Victoria A. Shaffer, Indra Spiecker genannt Döhmann, John Tooby, Gerhard Wagner, Elke U. Weber, Bernd Wittenbrink |
| bounded rationality the adaptive toolbox: Rationality for Mortals Gerd Gigerenzer, 2010-04-16 What is the nature of human wisdom? For many, the ideal image of sapiens is a heavenly one: an omniscient God, a Laplacean demon, a supercomputer, or a fully consistent logical system. Gerd Gigerenzer argues, in contrast, that there are more efficient tools than logic in our minds, which he calls fast and frugal heuristics. These adaptive tools work in a world where the present is only partially known and the future is uncertain. Here, rationality is not logical but ecological, and this volume shows how this insight can help remedy even the widespread problem of statistical innumeracy.RATIONALITY FOR MORTALS (which follows on a previous collection, ADAPTIVE THINKING, also published by OUP) presents Gigerenzer's most recent articles, revised and updated where appropriate, together with a newly written introduction. |
| bounded rationality the adaptive toolbox: Bounded Rationality Gerd Gigerenzer, Reinhard Selten, 2001 |
| bounded rationality the adaptive toolbox: Calculated Risks Gerd Gigerenzer, 2015-11-10 At the beginning of the twentieth century, H. G. Wells predicted that statistical thinking would be as necessary for citizenship in a technological world as the ability to read and write. But in the twenty-first century, we are often overwhelmed by a baffling array of percentages and probabilities as we try to navigate in a world dominated by statistics. Cognitive scientist Gerd Gigerenzer says that because we haven't learned statistical thinking, we don't understand risk and uncertainty. In order to assess risk -- everything from the risk of an automobile accident to the certainty or uncertainty of some common medical screening tests -- we need a basic understanding of statistics. Astonishingly, doctors and lawyers don't understand risk any better than anyone else. Gigerenzer reports a study in which doctors were told the results of breast cancer screenings and then were asked to explain the risks of contracting breast cancer to a woman who received a positive result from a screening. The actual risk was small because the test gives many false positives. But nearly every physician in the study overstated the risk. Yet many people will have to make important health decisions based on such information and the interpretation of that information by their doctors. Gigerenzer explains that a major obstacle to our understanding of numbers is that we live with an illusion of certainty. Many of us believe that HIV tests, DNA fingerprinting, and the growing number of genetic tests are absolutely certain. But even DNA evidence can produce spurious matches. We cling to our illusion of certainty because the medical industry, insurance companies, investment advisers, and election campaigns have become purveyors of certainty, marketing it like a commodity. To avoid confusion, says Gigerenzer, we should rely on more understandable representations of risk, such as absolute risks. For example, it is said that a mammography screening reduces the risk of breast cancer by 25 percent. But in absolute risks, that means that out of every 1,000 women who do not participate in screening, 4 will die; while out of 1,000 women who do, 3 will die. A 25 percent risk reduction sounds much more significant than a benefit that 1 out of 1,000 women will reap. This eye-opening book explains how we can overcome our ignorance of numbers and better understand the risks we may be taking with our money, our health, and our lives. |
| bounded rationality the adaptive toolbox: Extendable Rationality Davide Secchi, 2010-10-20 “How do people make decisions in organizations?” is the question at the core of this book. Do people act rationally? Under what conditions can information and knowledge be shared to improve decision making? Davide Secchi applies concepts and theories from cognitive science, organizational behavior, and social psychology to explore the dynamics of decision making. In particular, he integrates “bounded rationality” (people are only partly rational; they have (a) limited computational capabilities and (b) limited access to information) and “distributed cognition” (knowledge is not confined to an individual, but is distributed across the members of a group) to build upon the pioneering work of Herbert Simon (1916-2001) on rational decision making and contribute fresh insights. This book is divided into two parts. The first part (Chapters 2 to 5) explores how recent studies on biases, prospect theory, heuristics, and emotions provide the so-called “map” of bounded rationality. The second part (Chapter 6 to 8) presents the idea of extendable rationality. In this section, Secchi identifies the limitations of bounded rationality and focuses more heavily on socially-based decision processes and the role of “docility” in teaching, managing, and executing decisions in organizations. The practical implications extend broadly to issues relating to change and innovation, as organizations adapt to evolving market conditions, implementing new systems, and effectively managing limited resources. The final chapter outlines an agenda for future research to help understand the decision making characteristics and capabilities of an organization. |
| bounded rationality the adaptive toolbox: Exploring the Landscape of the Mind Stephen S. Clark, 2017-04-19 This book is based on the premise that humankind is, first and foremost, the outcome of the process of biological evolution. Recognition of this is fundamental to our understanding of who we are and how we behave. All living things have evolved the physical and mental attributes that promote their prospects for survival; they are good at doing the things that enable them to pass on their genes to succeeding generations, and we are no exception. Of course, through the development of culture, we have gained some freedom from our biological origins. Nevertheless, evolution has constructed the foundation upon which culture is built. The first part of the book, Ourselves Interacting with the World, presents an overview of the main capabilities that evolution has endowed us with and that enable us to interact with the environment in advantageous ways. This includes our senses, which act as windows on the world and also, of great importance, our emotions and ability to remember. Our ability to think is perhaps the crowning achievement of our evolutionary journey, and, of course, we must be able to act in a timely and effective manner. The second part of the book, Living Together, traces the history of how we became social creatures. To be truly human, we had to be capable of sharing and cooperation. We also needed to be able to control our aggressiveness and talent for deception. We settled down, making the transition from hunter-gatherers to urban dwellers, and agreed upon values and norms of behavior that enhanced our ability to get along. Ultimately, we came to see good and bad as a morality of right and wrong, further augmenting group cohesiveness. In the final part of the book, Challenges and Opportunities, attention turns to a consideration of the constraints and possibilities that must be considered in looking to the future. These realities can be seen to play out in four social arenas: the pursuit of fairness, the seeking of justice, the interplay of political beliefs and good government, and ultimately, a united society that is, at the same time, a true community. Our quest for these things will be greatly aided by a deep knowledge and appreciation of our evolutionary past and the indelible imprint it has left upon us. It may even lead us to that most elusive of all things, happiness. |
| bounded rationality the adaptive toolbox: Handbook of Contemporary Behavioral Economics Morris Altman, 2015-01-30 At a time when both scholars and the public demand explanations and answers to key economic problems that conventional approaches have failed to resolve, this groundbreaking handbook of original works by leading behavioral economists offers the first comprehensive articulation of behavioral economics theory. Borrowing from the findings of psychologists, sociologists, political scientists, legal scholars, and biologists, among others, behavioral economists find that intelligent individuals often tend not to behave as effectively or efficiently in their economic decisions as long held by conventional wisdom. The manner in which individuals actually do behave critically depends on psychological, institutional, cultural, and even biological considerations. Handbook of Contemporary Behavioral Economics includes coverage of such critical areas as the Economic Agent, Context and Modeling, Decision Making, Experiments and Implications, Labor Issues, Household and Family Issues, Life and Death, Taxation, Ethical Investment and Tipping, and Behavioral Law and Macroeconomics. Each contribution includes an extensive bibliography. |
| bounded rationality the adaptive toolbox: Bounded Rationality Sanjit S. Dhami, Cass R. Sunstein, 2022 An accessible and self-contained treatment of the current state of thinking about rationality in economics and other social sciences-- |
| bounded rationality the adaptive toolbox: Consumer Optimization Problem Solving Alfred L Norman, 2014-12-15 What algorithms are tractable depends on the speed of the processor. Given the speed of digital computers, polynomial algorithms are considered tractable. But, a human can take several seconds to make one binary comparison between two pens. Given this slow speed, sublinear algorithms are considered tractable for an unaided human and this defines Simon's concept of bounded rationality.Humans make simplifications to solve the intractable consumer optimization problem. Consumers search for goods and services item-by-item, which greatly reduces the number of alternatives to consider. In addition, consumers have operators that can process a set in a single operation. Also, consumers budget by incremental adjustment.In considering consumer performance the question to ask is how close to optimal is consumer performance and not whether consumers optimize as a yes/no question. Given the ordinal nature of utility theory this creates a basic measurement problem. The book presents a review of the literature on consumer performance.This is an opportune time to study consumer procedures because the Internet provides a media to make substantial improvements in consumer performance. The book includes a case study comparing the performance of a digital camera selection code with the advice of sales people. A field experiment demonstrates that the software code provides better advice. |
| bounded rationality the adaptive toolbox: Handbook of Decision Making Goktug Morcol, 2006-11-01 Handbook of Decision Making includes the wisdom of the long theological and philosophical traditions of human society, as well as a systematic exploration of the implications of contemporary evolutionary theories. Common patterns in decision making styles are identified as well as the common variations that different contexts may generate. The text covers the multiplicity of mainstream decision making styles such as cost-benefit analysis, and linear programming. It also explains alternative and emerging methods such as geographic information systems, Q-methodology, and narrative policy analysis. Practical applications are discussed using decision making practices in budgeting, public administration and governance, drug trafficking, and information systems. |
| bounded rationality the adaptive toolbox: Behavioral Rationality and Heterogeneous Expectations in Complex Economic Systems Cars Hommes, 2013-01-24 Recognising that the economy is a complex system with boundedly rational interacting agents, the book presents a theory of behavioral rationality and heterogeneous expectations in complex economic systems and confronts the nonlinear dynamic models with empirical stylized facts and laboratory experiments. The complexity modeling paradigm has been strongly advocated since the late 1980s by some economists and by multidisciplinary scientists from various fields, such as physics, computer science and biology. More recently the complexity view has also drawn the attention of policy makers, who are faced with complex phenomena, irregular fluctuations and sudden, unpredictable market transitions. The complexity tools - bifurcations, chaos, multiple equilibria - discussed in this book will help students, researchers and policy makers to build more realistic behavioral models with heterogeneous expectations to describe financial market movements and macro-economic fluctuations, in order to better manage crises in a complex global economy. |
| bounded rationality the adaptive toolbox: Economics and the Virtues Jennifer A. Baker, Mark D. White, 2016 Economics and the Virtues contains thirteen original essays by leading economists and philosophers that explore the contributions that virtue ethics can make to economics. Compared to other major systems of ethics such as utilitarianism and deontology that focus on the rightness or wrongness of actions, virtue ethics focuses on individuals and the virtues, character, and judgment that lead them in act morally. For this reason, virtue ethics provides aunique ethical perspective on the behavior of the individuals in economic models, a perspective which has become invaluable following recent financial events in the real world. The chapters in Economics and theVirtues provide historical and modern insights in both economics and philosophy and offer novel suggestions for incorporating the ethics of virtue into economics in order to make it more applicable to moral dilemmas in the world outside the models. |
| bounded rationality the adaptive toolbox: The Innate Mind Peter Carruthers, Stephen Laurence, Stephen Stich, 2007-01-04 This is the second volume of a projected three-volume set on the subject of innateness. The volume is highly interdisciplinary, and addresses such question as: To what extent are mature cognitive capacities a reflection of particular cultures and to what extent are they a product of innate elements? How do innate elements interact with culture to achieve mature cognitive capacities? How do minds generate and shape cultures? How are cultures processed by minds? The volume will be of great importance to anyone interested in the interplay between culture and the innate mind. |
| bounded rationality the adaptive toolbox: A Fast and Frugal Finance William P. Forbes, Aloysius Obinna Igboekwu, Shabnam Mousavi, 2019-11-15 A Fast and Frugal Finance: Bridging Contemporary Behavioural Finance and Ecological Rationality adds psychological reality to classical financial reasoning. It shows how financial professionals can reach better and quicker decisions using the 'fast and frugal' framework for decision-making, adding dramatically to time and outcome efficiency, while also retaining accuracy. The book provides the reader with an adaptive toolbox of heuristic tools and classification systems to aid real-world decisions. Throughout, financial applications are presented alongside real-world examples to help readers solve established problems in finance, including stock buying and selling decisions, when faced with not only risk but fundamental uncertainty. The book concludes by describing potential solutions to financial problems in the forefront of contemporary debates, and calls for taking psychological insights seriously. - Demonstrates how well-constructed 'fast and frugal' models can outperform standard models in time and outcome efficiency - Focuses on how financial decisions are made in reality, using heuristics, rather than how such decisions should be made - Discusses how cognition and the decision-making context interact in producing 'fast and frugal' choices that follow ecological rationality - Explores the development of decision-making trees in finance to aid in decision-making |
| bounded rationality the adaptive toolbox: Handbook of Experimental Economics Results Charles R. Plott, Vernon L. Smith, 2008-08-21 While the field of economics makes sharp distinctions and produces precise theory, the work of experimental economics sometimes appears blurred and may produce uncertain results. The contributors to this volume have provided brief notes describing specific experimental results. |
| bounded rationality the adaptive toolbox: Investor Decision-Making and the Role of the Financial Advisor Caterina Cruciani, 2017-11-13 This book looks at financial advisory from a behavioural perspective, and focuses on how the nature of the relationship between advisors and clients may affect the ability of the advisor to perform its functions. Broken into three key parts, the book looks at the client, the advisor, and the relationship between the two. Chapters review relevant theories of decision-making under risk to understand the nature of clients’ decisions. The literature on advisors’ functions and the normative landscape regulating financial advisory are also addressed. Finally, this book reviews how behavioural finance has traditionally addressed portfolio selection and explains how trust can be seen as a viable avenue to maximize advisors’ effectiveness and pursue clients’ needs. This book will be of interest to both behavioural finance scholars and practitioners interested in understanding what the future of financial advisory may have in stock. |
| bounded rationality the adaptive toolbox: Plight of the Fortune Tellers Riccardo Rebonato, 2007-09-17 Today's top financial-risk professionals have come to rely on ever-more sophisticated mathematics in their attempts to come to grips with financial risk. But this excessive reliance on quantitative precision is misleading--and it puts us all at risk. This is the case that Riccardo Rebonato makes in Plight of the Fortune Tellers--and coming from someone who is both an experienced market professional and an academic, this heresy is worth listening to. Rebonato forcefully argues that we must restore genuine decision making to our financial planning, and he shows us how to do it using probability, experimental psychology, and decision theory. This is the only way to effectively manage financial risk in a manner congruent with how human beings actually react to chance. Rebonato challenges us to rethink the standard wisdom about probability in financial-risk management. Risk managers have become obsessed with measuring risk and believe that these quantitative results by themselves can guide sound financial choices--but they can't. In this book, Rebonato offers a radical yet surprisingly commonsense solution, one that seeks to remind us that managing risk comes down to real people making decisions under uncertainty. Plight of the Fortune Tellers is not only a book for the decision makers of Wall Street, it's a must-read for anyone concerned about how today's financial markets are run. The stakes have never been higher--can you risk it? |
| bounded rationality the adaptive toolbox: Principles of Management Oliver Laasch, 2021-03-10 There is now widespread understanding that business and management must evolve and act responsibly in the world giving full consideration to people and planet, not just profit. Principles of Management: Practicing Ethics, Sustainability, Responsibility was the first official textbook of the United Nations global initiative network, Principles for Responsible Management Education (PRME). Now fully revised and updated with three brand new chapters on communicating, innovating and leading, this accessible and engaging textbook provides an introduction to management while empowering you to think ethically and sustainably in order to become a responsible manager. It also includes essential workplace skills for the 21st century and coverage of the various management occupations that you will go on to fill after your studies. Exclusive interviews with management pioneers and professionals help bring theories and concepts to life throughout the text as do the all new case studies which include Lego, Patagonia and Greta Thunberg. Worksheets and exercises make for an active learning experience alongside the supporting online resources provided to your lecturer for dissemination. The textbook includes coverage of the UN’s Sustainable Development Goals (SDGs) which are central to business education and practice today. It can be used for introductory management courses as well as courses that cover business ethics, business and society, corporate social responsibility (CSR), sustainability and responsible management. |
| bounded rationality the adaptive toolbox: Individuals and Identity in Economics John B. Davis, 2010-09-30 This book examines the different conceptions of the individual that have emerged in recent new approaches in economics, including behavioral economics, experimental economics, social preferences approaches, game theory, neuroeconomics, evolutionary and complexity economics, and the capability approach. These conceptions are classified according to whether they seek to revise the traditional atomist individual conception, put new emphasis on interaction and relations between individuals, account for individuals as evolving and self-organizing, and explain individuals in terms of capabilities. The method of analysis uses two identity criteria for distinguishing and re-identifying individuals to determine whether these different individual conceptions successfully identify individuals. Successful individual conceptions account for sub-personal and supra-personal bounds on single individual explanations. The former concerns the fragmentation of individuals into multiple selves; the latter concerns the dissolution of individuals into the social. The book develops an understanding of bounded individuality, seen as central to the defense of human rights. |
| bounded rationality the adaptive toolbox: The Routledge Handbook of Privacy and Social Media Sabine Trepte, Philipp Masur, 2023-06-27 This volume provides the basis for contemporary privacy and social media research and informs global as well as local initiatives to address issues related to social media privacy through research, policymaking, and education. Renowned scholars in the fields of communication, psychology, philosophy, informatics, and law look back on the last decade of privacy research and project how the topic will develop in the next decade. The text begins with an overview of key scholarship in online privacy, expands to focus on influential factors shaping privacy perceptions and behaviors – such as culture, gender, and trust – and continues with specific examinations of concerns around vulnerable populations such as children and older adults. It then looks at how privacy is managed and the implications of interacting with artificial intelligence, concluding by discussing feasible solutions to some of the more pressing questions surrounding online privacy. This handbook will be a valuable resource for advanced students, scholars, and policymakers in the fields of communication studies, digital media studies, psychology, and computer science. Chapter 22 and Chapter 30 of this book are freely available as downloadable Open Access PDFs at http://www.taylorfrancis.com under a Creative Commons Attribution-Non Commercial-No Derivatives (CC-BY-NC-ND) 4.0 license. |
| bounded rationality the adaptive toolbox: Economics and Other Disciplines Ricardo F. Crespo, 2017-05-18 During the second half of the twentieth century, economics exported its logic – utility maximization – to the analysis of several human activities or realities: a tendency that has been called “economic imperialism”. This book explores the concept termed by John Davis as “reverse imperialism”, whereby economics has been seen in recent years to have taken in elements from other disciplines. Economics and Other Disciplines sheds light on the current state and possible future development of economics by focusing on it from a philosophical perspective, broadening the concept of rationality in economic theory. The beliefs that prevail in the world today make up a physicalist worldview. This book argues that this pervasive view is harmful for economics as a social science. Do new economic currents like behavioral economics, evolutionary economics, neuroeconomics, institutional economics, happiness economics, the capability approach and civil economy, escape this widespread mentality? What would be an adequate underlying economic ethos? Do these approaches fit into this ethos? Ricardo F. Crespo appraises the contributions from a classical philosophy angle, emphasizing their implications regarding practical reason. This volume is of great importance to those who are interested in political economy, economic theory and philosophy, as well as philosophy of social science. |
| bounded rationality the adaptive toolbox: Research Handbook on Corporate Restructuring Omar, Paul J., Gant, Jennifer L.L., 2021-08-27 This timely Research Handbook examines the increasingly economically vital topic of corporate restructuring. Reflecting a shift in the global approach to insolvency towards a focus on rescuing viable businesses rather than liquidation, chapters consider all areas of the law closely connected to corporate insolvency, rehabilitation and rescue, as well as the introduction of the EU Preventive Restructuring Directive and other reforms from around the world. |
| bounded rationality the adaptive toolbox: Psychology at the Turn of the Millennium, Volume 1 Lars Backman, Claes von Hofsten, 2005-08-18 Provides a snapshot of the entire field of psychology as presented by leading figures in each discipline |
| bounded rationality the adaptive toolbox: Global Competitiveness and Innovation G. Clark, P. Tracey, 2004-02-27 The key arguments and debates about globalization have raised searching questions about the significance of national and regional borders for the competitive strategies of individuals, firms and industries. Global Competitiveness and Innovation seeks to address these issues by exploring four key topics: The status of economic agents in the emerging global economy; the limits of path dependence and the scope of agent action; the relationship between agents' decision-making and their environments; and agents' learning capacities in a world of information and knowledge creation. |
| bounded rationality the adaptive toolbox: Intelligent Decision Making: An AI-Based Approach Gloria Phillips-Wren, Nikhil Ichalkaranje, 2008-02-27 Intelligent Decision Support Systems have the potential to transform human decision making by combining research in artificial intelligence, information technology, and systems engineering. The field of intelligent decision making is expanding rapidly due, in part, to advances in artificial intelligence and network-centric environments that can deliver the technology. Communication and coordination between dispersed systems can deliver just-in-time information, real-time processing, collaborative environments, and globally up-to-date information to a human decision maker. At the same time, artificial intelligence techniques have demonstrated that they have matured sufficiently to provide computational assistance to humans in practical applications. This book includes contributions from leading researchers in the field beginning with the foundations of human decision making and the complexity of the human cognitive system. Researchers contrast human and artificial intelligence, survey computational intelligence, present pragmatic systems, and discuss future trends. This book will be an invaluable resource to anyone interested in the current state of knowledge and key research gaps in the rapidly developing field of intelligent decision support. |
| bounded rationality the adaptive toolbox: Agency in Language Policy and Planning: Jeremie Bouchard, Gregory Paul Glasgow, 2018-12-21 This collection brings together theory and ethnographic research from a range of national contexts to offer unique insights into the nature of agency in language policy and planning. Situated within a broader sociological framework, the book explores agentive processes at work in case studies from around the world, engaging in discussions of such key themes as language and identity, language ideologies, linguistic diversity in education, and language revitalization. Each chapter examines the ways in which decisions made at both the local and national level impact language use and in turn, the dynamic relationship between language use, policy, and practice in these contexts. Taken together, this volume advances our understanding of agency in language policy and planning and directions for future research, making this key reading for students and scholars in language and education, critical sociolinguistics, and applied linguistics. |
| bounded rationality the adaptive toolbox: Knowledge and the Economy Peter Meusburger, Johannes Glückler, Martina Meskioui, 2013-05-23 The broad spectrum of topics surrounding what is termed the ‘knowledge economy’ has attracted increasing attention from the scientific community in recent years. The nature of knowledge-intensive industries, the spatiality of knowledge, the role of proximity and distance in generating functional knowledge, the transfer of knowledge via networks, and the complex interplay between knowledge, location and economic development are all live academic issues. This book, the fifth volume in Springer’s Knowledge and Space series, focuses on the last of these: the multiple relationships between knowledge, the economy, and space. It reflects the conceptual and methodological multidisciplinarity emerging from this scholarship, yet where there has up to now been a notable lack of communication between some of the contributing disciplines, resulting in lexical and other confusions, this volume brings concord and to foster interdisciplinarity. These complications have been especially evident in our understanding of the spatiality of knowledge, the part that spatial contexts play in knowledge creation and diffusion, and the relevance of face-to-face contacts, all of which are addressed in these pages. The material here is grouped into four sections—knowledge creation and economy, knowledge and economic development, knowledge and networks, and knowledge and clusters. It assembles new concepts and original empirical research from geography, economics, sociology, international business relations, and management. The book addresses a varied audience interested in the historical and spatial foundations of the knowledge economy and is intended to bridge some of the gaps between the differing approaches to research on knowledge, the economy, and space. |
| bounded rationality the adaptive toolbox: Reflexivity in Economics Serena Sandri, 2008-11-30 Since the individuals are not just stimulus-response machines but more complex beings that think and are simultaneously conscious of their thought, re?exivity is potentially involved in all human acts of cognition and in all conceptualizations. On this basis, each human discourse can be characterized as a way of thought f- mulation and therefore, reveals a self-referring nature. On this level of re?exivity, the individual thought shapes beliefs and mental representations which give life to mental models and strive to predict future events and developments to support the individuals in their decision-making. Such mental models are re?ected by the - dividuals themselves and on the situation they are confronted with. According to the result of this recursive application, the individuals will then decide which model they want to refer to, or in other words, which model they want to absorb. Similarly, the individuals can make use of social theories and predictions which can therefore yield recursive effects and interfere with the phenomena they aim to depict. Revealed theories, if accepted, may in?uence the behaviour or the agents they focus on, either in the sense of validation of the theoretical content or in that of its rejection. |
| bounded rationality the adaptive toolbox: Models of a Man Mie Augier, James G. March, 2004-03-26 Essays that pay tribute to the wide-ranging influence of the late Herbert Simon, by friends and colleagues. Herbert Simon (1916-2001), in the course of a long and distinguished career in the social and behavioral sciences, made lasting contributions to many disciplines, including economics, psychology, computer science, and artificial intelligence. In 1978 he was awarded the Nobel Prize in economics for his research into the decision-making process within economic organizations. His well-known book The Sciences of the Artificial addresses the implications of the decision-making and problem-solving processes for the social sciences. This book (the title is a variation on the title of Simon's autobiography, Models of My Life) is a collection of short essays, all original, by colleagues from many fields who felt Simon's influence and mourn his loss. Mixing reminiscence and analysis, the book represents a small acknowledgment of a large debt. Each of the more than forty contributors was asked to write about the one work by Simon that he or she had found most influential. The editors then grouped the essays into four sections: Modeling Man, Organizations and Administration, Modeling Systems, and Minds and Machines. The contributors include such prominent figures as Kenneth Arrow, William Baumol, William Cooper, Gerd Gigerenzer, Daniel Kahneman, David Klahr, Franco Modigliani, Paul Samuelson, and Vernon Smith. Although they consider topics as disparate as Is Bounded Rationality Unboundedly Rational? and Personal Recollections from 15 Years of Monthly Meetings, each essay is a testament to the legacy of Herbert Simon—to see the unity rather than the divergences among disciplines. |
| bounded rationality the adaptive toolbox: Models of Bounded Rationality Univ Of Chicago, Herbert A. Simon, 1997-07 Offering alternative models based on such concepts as satisficing(acceptance of viable choices that may not be the undiscoverableoptimum) and bounded rationality (the limited extent to which rationalcalculation can direct human behavior), Simon shows concretely whymore empirical research based on experiments and direct observation, rather than just statistical analysis of economic aggregates, isneeded. |
| bounded rationality the adaptive toolbox: Heuristic Reasoning in Management Accounting Jörn Sebastian Basel, Jörn Basel, 2012 Heuristics are short-cuts and deliberately ignore information, for instance through examining fewer cues or integrating less information. However, this collides with a view on management accountants and controllers as rational agents which seems to suggest that all available information should be considered. As their role as information supplier is often accompanied with the task to assist managers in their judgment and decision making, they have huge influence on these processes. Therefore, it is of high relevance to know if, how, and which heuristics management accountants and controllers use. Furthermore, we need to know which individual and situational factors influence their usage of heuristics. With a series of five empirical studies, applying a mixed-methods research design, the author sheds light to these research questions and addresses some central claims of the potential biases but also the stunning benefits of relying on heuristic reasoning. Central to his discussion are dual-process-approaches which are debated in cognitive psychology. Scholars of these approaches claim that we should distinguish between two distinct processes (or systems) of the human mind. Following this interpretation, heuristics are processes which are described as intuitive, automatic, fast, and unconscious. They are routinized cognitive processes which are based on experience in certain social environments and thus often exhibit ecological rationality. Overall, this book picks up an up-to-date topic in behavioural accounting research, which not only is of relevance for researchers but as well for practitioners. |
| bounded rationality the adaptive toolbox: Elgar Companion to Herbert Simon Gerd Gigerenzer, Shabnam Mousavi, Riccardo Viale, 2024-04-12 Honoring the life and work of Herbert Simon, this illuminating Companion provides an in-depth survey of one of the most prolific social scientists of our age. Mirroring the breadth of Simon’s studies, chapters analyze his contributions to artificial intelligence, economics, entrepreneurship, management, psychology and other fields. |
| bounded rationality the adaptive toolbox: Bounded Thinking Adam Morton, 2012-11-08 Bounded Thinking offers a new account of the virtues of limitation management: intellectual virtues of adapting to the fact that we cannot solve many problems that we can easily describe. Adam Morton argues that we do give one another guidance on managing our limitations, but that this has to be in terms of virtues and not of rules, and in terms of success—knowledge and accomplishment—rather than rationality. He establishes a taxonomy of intellectual virtues, which includes 'paradoxical virtues' that sound like vices, such as the virtue of ignoring evidence and the virtue of not thinking too hard. There are also virtues of not planning ahead, in that some forms of such planning require present knowledge of one's future knowledge that is arguably impossible. A person's best response to many problems depends not on the most rationally promising solution to solving them but on the most likely route to success given the profile of intellectual virtues that the person has and lacks. Morton illustrates his argument with discussions of several paradoxes and conundra. He closes the book with a discussion of intelligence and rationality, and argues that both have very limited usefulness in the evaluation of who will make progress on which problems. |
BOUNDED Definition & Meaning - Merriam-Webster
The meaning of BOUNDED is having a mathematical bound or bounds. How to use bounded in a sentence.
BOUNDED | English meaning - Cambridge Dictionary
BOUNDED definition: 1. past simple and past participle of bound 2. to move quickly with large jumping movements 3. to…. Learn more.
Bounded function - Wikipedia
In mathematics, a function defined on some set with real or complex values is called bounded if the set of its values (its image) is bounded. In other words, there exists a real number M …
How to Use Bound vs. bounded Correctly - GRAMMARIST
Bounded is the past tense and past participle of the verb bound, which has two main definitions: (1) to confine or serve as the boundary of, and (2) to leap or spring. For example, an island is …
Bounded Function & Unbounded: Definition, Examples
In order for a function to be classified as “bounded”, its range must have both a lower bound (e.g. 7 inches) and an upper bound (e.g. 12 feet). Any function that isn’t bounded is unbounded. A …
Bounded Functions - Department of Mathematics at UTSA
Nov 17, 2021 · A function f defined on some set X with real or complex values is called bounded if the set of its values is bounded. In other words, there exists a real number M such that | | for …
BOUNDED Definition & Meaning | Dictionary.com
Bounded definition: having bounds or limits.. See examples of BOUNDED used in a sentence.
Bounded - definition of bounded by The Free Dictionary
To set a limit to; confine: a high wall that bounded the prison yard; lives that were bounded by poverty. 2. To constitute the boundary or limit of: a city park that was bounded by busy streets.
Bounded - Definition, Meaning & Synonyms | Vocabulary.com
3 days ago · DISCLAIMER: These example sentences appear in various news sources and books to reflect the usage of the word ‘bounded'. Views expressed in the examples do not represent …
BOUNDED definition and meaning | Collins English Dictionary
(of a set) having a bound, esp where a measure is defined in terms of which all the elements of the set, or the differences between all pairs of members, are less than some value, or else all …
BOUNDED Definition & Meaning - Merriam-Webster
The meaning of BOUNDED is having a mathematical bound or bounds. How to use bounded in a sentence.
BOUNDED | English meaning - Cambridge Dictionary
BOUNDED definition: 1. past simple and past participle of bound 2. to move quickly with large jumping movements 3. to…. Learn more.
Bounded function - Wikipedia
In mathematics, a function defined on some set with real or complex values is called bounded if the set of its values (its image) is bounded. In other words, there exists a real …
How to Use Bound vs. bounded Correctly - GRAMMARIST
Bounded is the past tense and past participle of the verb bound, which has two main definitions: (1) to confine or serve as the boundary of, and (2) to leap or spring. For …
Bounded Function & Unbounded: Definition, Examples
In order for a function to be classified as “bounded”, its range must have both a lower bound (e.g. 7 inches) and an upper bound (e.g. 12 feet). Any function that isn’t bounded is …
