Bounding rationality to the world

Abstract

Simon proposed that human rationality is bounded by both internal (mental) and external (environmental) constraints. Traditionally, these constraints have been seen as independent, leading to a notion of bounded rationality that is either the attempt to do as well as possible given the demands of the world -the notion of optimization under constraints -or as the suboptimal outcome of the limited cognitive system -the realm of cognitive illusions. But there is a third possibility, following SimonÕs original conception: rather than being unrelated, the two sets of bounds may fit together like the blades in a pair of scissors. The mind can take advantage of this fit to make good decisions, by using mental mechanisms whose internal structure exploits the external information structures available in the environment. In this paper we lay out a research program for studying simple decision heuristics of this sort that expands on SimonÕs own search for mechanisms of bounded rationality. We then illustrate how these heuristics can make accurate decisions in appropriate environments, and present detailed examples of two heuristics inspired by SimonÕs ideas on recognition-based processing and satisficing in sequential search.

Visually Modelling Collaborative Research into Innovative Community Disaster Resilience Practice, Strategy, and Governance

“…We must ask ourselves whether the boundary object in front of us will really help us achieve what we need it to, while asking what other tools we need to deploy. To do otherwise would distance organizational development from what Huggins and Jones (2012) and Todd and Gigerenzer (2003) have referred to as ''ecological rationality,'' where selective and efficient understandings help make genuinely useful decisions, in particular situations. Further research into planning, monitoring, evaluating, and/or researching community disaster resilience programs will benefit from considering this established criterion.…”

A Metaphoric Rhetorical Criticism on Aminuddin Baki’s Speech: Some Preliminary Findings

“…Pathos would on the amount of cost that can be maximally incurred for the company to stay afloat oppose to this, by highlighting the pain caused. Logos would apply bounded rationality to acknowledge the pain, but would also reason that it is a necessary evil to ensure the survival of others staying behind (Todd & Gigerenzer, 2003) . Hypothetically speaking, logos would then proceed by showing evidence (McCrosky, 1969).…”

Influence of involvement and motivation to correction on product evaluation: Asymmetry for strong and weak brands

“…Consistent with the heuristic-systematic model, Maheswaran et al (1992) hypothesized and found that the brand effect occurs because brand knowledge operates as a heuristic cue. In general, relying on heuristics is considered to be an essential element of human functioning due to its adaptive role (Todd & Gigerenzer, 2003). In some circumstances, such as a medium level of knowledge, heuristics facilitate relatively fast and (mostly) accurate decisions (Kardes, 2006) because they are often correct, being based on an individual's own experiences (Slovic, Finucane, Peters & MacGregor, 2002).…”

“…Researchers have found that the brand effect is more likely to occur when the stimulating material confirms the brand-knowledge expectations (Maheswaran et al, 1992) or when it is ambiguous: refers to new unknown products (Macdonald & Sharp, 2000;Moorthy et al, 1997) or does not deliver satisfactory information in the product description (Todd & Gigerenzer, 2003). Task involvement as another limitation of brand usage needs to be emphasized.…”