The Center for Adaptive Behavior and Cognition at the Max Planck Institute for Human Development in Berlin has launched one of the most ambition projects yet to explore the impact of bounded rationality on human judgment.
While bounded rationality struggles for respect in fields such as psychology, artificial intelligence, and economics, it has largely replaced the optimality assessments long favored by investigators of animal behavior in natural habitats, Seeley says.
The no-trade example ranks as Sargent's most interesting application of bounded rationality.
The entire middle section of Bounded Rationality proves equally difficult.
In Bounded Rationality in Macroeconomics, Thomas Sargent seeks to inform the reader about bounded rationality and, more importantly, to persuade him that bounded rationality is a valuable approach to macroeconomic problems.
If Sargent had recalled the observation, he would have produced a valuable introduction to bounded rationality modeling.