Modeling Bounded Rationality

Modeling Bounded Rationality
Author: Ariel Rubinstein
Publisher: MIT Press
Total Pages: 226
Release: 1998
Genre: Business & Economics
ISBN: 9780262681001

The notion of bounded rationality was initiated in the 1950s by Herbert Simon; only recently has it influenced mainstream economics. In this book, Ariel Rubinstein defines models of bounded rationality as those in which elements of the process of choice are explicitly embedded. The book focuses on the challenges of modeling bounded rationality, rather than on substantial economic implications. In the first part of the book, the author considers the modeling of choice. After discussing some psychological findings, he proceeds to the modeling of procedural rationality, knowledge, memory, the choice of what to know, and group decisions.In the second part, he discusses the fundamental difficulties of modeling bounded rationality in games. He begins with the modeling of a game with procedural rational players and then surveys repeated games with complexity considerations. He ends with a discussion of computability constraints in games. The final chapter includes a critique by Herbert Simon of the author's methodology and the author's response. The Zeuthen Lecture Book series is sponsored by the Institute of Economics at the University of Copenhagen.

Computable Foundations for Economics

Computable Foundations for Economics
Author: K. Vela Velupillai
Publisher: Routledge
Total Pages: 514
Release: 2012-07-26
Genre: Business & Economics
ISBN: 1134253362

Computable Foundations for Economics is a unified collection of essays, some of which are published here for the first time and all of which have been updated for this book, on an approach to economic theory from the point of view of algorithmic mathematics. By algorithmic mathematics the author means computability theory and constructive mathematics. This is in contrast to orthodox mathematical economics and game theory, which are formalised with the mathematics of real analysis, underpinned by what is called the ZFC formalism, i.e., set theory with the axiom of choice. This reliance on ordinary real analysis and the ZFC system makes economic theory in its current mathematical mode completely non-algorithmic, which means it is numerically meaningless. The book provides a systematic attempt to dissect and expose the non-algorithmic content of orthodox mathematical economics and game theory and suggests a reformalization on the basis of a strictly rigorous algorithmic mathematics. This removes the current schizophrenia in mathematical economics and game theory, where theory is entirely divorced from algorithmic applicability – for experimental and computational exercises. The chapters demonstrate the uncomputability and non-constructivity of core areas of general equilibrium theory, game theory and recursive macroeconomics. The book also provides a fresh look at the kind of behavioural economics that lies behind Herbert Simon’s work, and resurrects a role for the noble classical traditions of induction and verification, viewed and formalised, now, algorithmically. It will therefore be of particular interest to postgraduate students and researchers in algorithmic economics, game theory and classical behavioural economics.

Bounded Rationality and Behavioural Economics

Bounded Rationality and Behavioural Economics
Author: Graham Mallard
Publisher: Routledge
Total Pages: 141
Release: 2015-08-14
Genre: Business & Economics
ISBN: 1317653858

Economics Nobel Laureate Herbert Simon developed the concept of bounded rationality in the 1950s. This asserts that the cognitive abilities of human decision-makers are not always sufficient to find optimal solutions to complex real-life problems, leading decision-makers to find satisfactory, sub-optimal outcomes. This was a foundational component of the development of Behavioural Economics but in recent years the two fields have diverged, each with its own literature, its own approach and its own proponents. Behavioural Economics explores the areas of commonality between Economics and Psychology, in terms of its focus and its approach, whereas the bounded rationality literature largely analyses the implications of sub-optimal decision‐making through the mathematically sophisticated methodology of mainstream Economics. This book examines the nature and consequences of this divergence and questions whether this is a case of beneficial specialisation or whether it is unhelpful, potentially stunting the development of some aspects of Economics. It has been suggested that the major deficiency of Behavioural Economics is that it has failed to produce a single, widely applicable alternative to constrained optimisation. This book evaluates the extent to which this is the true and, if it is, the extent to which it is a product of the divergence between the two literatures. It also seeks to identify commonalities between the two subjects and suggests avenues of research in Economics that would benefit from a re-fusion of these two fields.

Computable, Constructive and Behavioural Economic Dynamics

Computable, Constructive and Behavioural Economic Dynamics
Author: Stefano Zambelli
Publisher: Routledge
Total Pages: 560
Release: 2010-02-25
Genre: Business & Economics
ISBN: 1135272530

The book contains thirty original articles dealing with important aspects of theoretical as well as applied economic theory. While the principal focus is on: the computational and algorithmic nature of economic dynamics; individual as well as collective decision process and rational behavior, some contributions emphasize also the importance of classical recursion theory and constructive mathematics for dynamical systems, business cycles theories, growth theories, and others are in the area of history of thought, methodology and behavioural economics. The contributors range from Nobel Laureates to the promising new generation of innovative thinkers. This volume is also a Festschrift in honour of Professor Kumaraswamy Vela Velupillai, the founder of Computable Economics, a growing field of research where important results stemming from classical recursion theory and constructive mathematics are applied to economic theory. The aim and hope is to provide new tools for economic modelling. This book will be of particular appeal to postgraduate students and scholars in one or more of the following fields: computable economics, business cycles, macroeconomics, growth theories, methodology, behavioural economics, financial economics, experimental and agent based economics. It might be also of importance to those interested on the general theme of algorithmic foundations for social sciences.

Computable, Constructive & Behavioural Economic Dynamics

Computable, Constructive & Behavioural Economic Dynamics
Author: Stefano Zambelli
Publisher: Routledge
Total Pages: 812
Release: 2010-02-25
Genre: Business & Economics
ISBN: 1135272522

The book contains thirty original articles dealing with important aspects of theoretical as well as applied economic theory. While the principal focus is on: the computational and algorithmic nature of economic dynamics; individual as well as collective decision process and rational behavior, some contributions emphasize also the importance of classical recursion theory and constructive mathematics for dynamical systems, business cycles theories, growth theories, and others are in the area of history of thought, methodology and behavioural economics. The contributors range from Nobel Laureates to the promising new generation of innovative thinkers. This volume is also a Festschrift in honour of Professor Kumaraswamy Vela Velupillai, the founder of Computable Economics, a growing field of research where important results stemming from classical recursion theory and constructive mathematics are applied to economic theory. The aim and hope is to provide new tools for economic modelling. This book will be of particular appeal to postgraduate students and scholars in one or more of the following fields: computable economics, business cycles, macroeconomics, growth theories, methodology, behavioural economics, financial economics, experimental and agent based economics. It might be also of importance to those interested on the general theme of algorithmic foundations for social sciences.

Artificial Economics

Artificial Economics
Author: Ruben Mercado
Publisher: Cambridge University Press
Total Pages: 197
Release: 2021-11-04
Genre: Business & Economics
ISBN: 1316517098

An introductory overview of the methods, models and interdisciplinary links of artificial economics. Addresses the differences between the assumptions and methods of artificial economics and those of mainstream economics. This is one of the first books to fully address, in an intuitive and conceptual form, this new way of doing economics.

A Computable Universe

A Computable Universe
Author: Hector Zenil
Publisher: World Scientific
Total Pages: 855
Release: 2013
Genre: Computers
ISBN: 981437430X

This volume, with a foreword by Sir Roger Penrose, discusses the foundations of computation in relation to nature.It focuses on two main questions: What is computation? How does nature compute?The contributors are world-renowned experts who have helped shape a cutting-edge computational understanding of the universe. They discuss computation in the world from a variety of perspectives, ranging from foundational concepts to pragmatic models to ontological conceptions and philosophical implications.The volume provides a state-of-the-art collection of technical papers and non-technical essays, representing a field that assumes information and computation to be key in understanding and explaining the basic structure underpinning physical reality. It also includes a new edition of Konrad Zuse''s OC Calculating SpaceOCO (the MIT translation), and a panel discussion transcription on the topic, featuring worldwide experts in quantum mechanics, physics, cognition, computation and algorithmic complexity.The volume is dedicated to the memory of Alan M Turing OCo the inventor of universal computation, on the 100th anniversary of his birth, and is part of the Turing Centenary celebrations.

Keynesian, Sraffian, Computable and Dynamic Economics

Keynesian, Sraffian, Computable and Dynamic Economics
Author: Kumaraswamy Velupillai
Publisher: Springer Nature
Total Pages: 447
Release: 2021-03-08
Genre: Business & Economics
ISBN: 3030581314

This book explores an alternative approach to the conventional, market-based, view of economic theory and economic policy, at theoretical, numerical and applicable levels. The chapters provide a theoretical, empirical, and algorithmic approach to marcodynamics, Sraffian economics, and current policy issues. Post-Keynesian macroeconomics, business cycle theory, the trade cycle, microfoundations, and the Philips Machine are also covered. This book aims to challenge orthodox ideas and provide a lens through which to honour the work of Stefano Zambelli. It will be of relevant to students and academics interested in economics.

Computable Economics

Computable Economics
Author: Kumaraswamy Velupillai
Publisher:
Total Pages: 250
Release: 2000
Genre: Business & Economics
ISBN: 9780198295273

In the field of economic analysis, computability in the formation of economic hypotheses is seen as the way forward. In this book, Professor Velupillai implements a theoretical research program along these lines. Choice theory, learning rational expectations equlibria, the persistence of adaptive behavior, arithmetical games, aspects of production theory, and economic dynamics are given recursion theoretic (i.e. computable) interpretations.