Modeling Bounded Rationality [Paperback]

Ariel Rubinstein (Author)

Book Description

Series: Zeuthen Lectures | Publication Date: December 26, 1997

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.

Editorial Reviews

About the Author

Ariel Rubinstein is Professor of Economics at Tel Aviv University and at Princeton University.

Product Details

• Paperback: 208 pages
• Publisher: The MIT Press (December 26, 1997)
• Language: English
• ISBN-10: 0262681005
• ISBN-13: 978-0262681001
• Product Dimensions: 8.8 x 5.8 x 0.6 inches
• Shipping Weight: 13.3 ounces (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (3 customer reviews)
• Amazon Best Sellers Rank: #492,686 in Books (See Top 100 in Books)

More About the Author

Discover books, learn about writers, read author blogs, and more.

Customer Reviews

Most Helpful Customer Reviews

7 of 7 people found the following review helpful:

3.0 out of 5 stars Insightful, but less economics and more psychology, July 11, 2004

By 

Jeffrey Franson (Canada) - See all my reviews
(REAL NAME)   

This review is from: Modeling Bounded Rationality (Paperback)

Very well written in terms of technical coverage and originality of modelling bounded rationality and its application to game theory. However, the author develops most of his theories from either assumption and speculation or no justification at all in terms of formally depicting human rationality. It would have been a much more powerful book if there was a greater coverage of empirical evidence and bridging between psychology, artificial intelligence and economics. This lop-sided approach of modelling using solely game theoretic terminology and concepts ambiguous in their relevancy to simulating human thought and behaviour. However, there are some chapters, such as the one on knowledge representation and the other on limited memory that are the exception to this. Overall though, the book is still quite innovative and worth a read.

16 of 20 people found the following review helpful:

5.0 out of 5 stars Fun with bounded rationality, April 2, 2000

By A Customer

This review is from: Modeling Bounded Rationality (Paperback)

This is a terrific book for anyone who wants to know more about tractable ways to relax the usual economist's assumption of perfect rationality. The book is well written and includes some exercises which would lead an ambitious reader to write his own book on the topic. If you are interested in bounded rationality, this is a book you should own.

6 of 7 people found the following review helpful:

5.0 out of 5 stars Interesting Reading, September 13, 2002

By A Customer

This review is from: Modeling Bounded Rationality (Paperback)

A very interesting book on an interesting subject. The mathematic is very easy, the thoughts are not, or at least not always.
For anybody interested in this subject, this is good reading material.