Economic Decisions and Simon’s Notion of Bounded Rationality

Schilirò, Daniele

doi:10.5539/ibr.v11n7p64

Cited by 11 publications

(5 citation statements)

References 26 publications

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“…Concepts from two major applicable theoretical systems, Bounded Rationality Theory (BRT) [61][62][63] and Bandura's Theory of Self Efficacy (SE) [64][65][66], framed this research. Based on BRT, we expect that cognitive limitations and incomplete information availability will drive students to make decisions based on knowable qualities, such as income and specialty competitiveness, instead of acting to maximize their own personal values [61,62]. SE focuses on one's belief in his/her ability to influence their cognitive response to adversity and thus persevere toward their goals [64].…”

Section: Objectivesmentioning

confidence: 99%

Diversity of the physician workforce: Specialty choice decisions during medical school

2021

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Background Despite efforts to increase the overall diversity of the medical student body, some medical specialties have a less diverse applicant pool based on both gender and race than would be expected based on medical graduate demographics. Objectives To identify whether women and Underrepresented in Medicine (URiM) medical students have baseline differences in their career interests or if their career plans change more during medical school when compared to men and non-URIM students. Methods Secondary data analyses of all medical students who applied through ERAS from 2005–2010 was conducted. Binary logistic regression models with the response being a planned career in one of four medical specialties (internal medicine, pediatrics, OB/GYN, and general surgery/surgical specialties) at medical school entry and graduation. Regression models included demographics, student attitudes, debt, academic metrics, and medical school experiences. Results Comparatively, women were less likely to be interested in internal medicine and surgery and more interested in pediatrics and OB/GYN at matriculation. URiM students expressed more interest in OB/GYN and surgery when starting medical school. At graduation, women were less likely to plan for internal medicine and surgery and were more interested in pursuing OB/GYN and pediatrics. URiM students were more likely to plan for a career in internal medicine and less likely to choose pediatrics. Conclusions From matriculation to graduation, women have relatively stable preferences regarding planned medical specialties. In contrast, URiM students’ specialty plans shifted over time among the four specialties, with variation in preferences occurring between matriculation and graduation.

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Section: Objectivesmentioning

confidence: 99%

Diversity of the physician workforce: Specialty choice decisions during medical school

2021

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“…Many authors argued that the current definition of health utility fails to fulfill its basic function as this definition puts emphasis on the decision-making process that generates the health utility without providing a clear and concise description of its particular essence, intrinsic nature, and indispensable qualities ( Kahneman and Tversky, 1979 ; Kahneman and Thaler, 1991 ; Kahneman et al, 1997 ; Kahneman and Sugden, 2005 ). Several authors also stated that the current definition of health utility makes gratuitous use of personal preferences in order to approximate actual experienced utility as research shows that personal preferences are unstable over time and are based on incomplete information as well as bounded rationality making them inappropriate for projective purposes ( Kahneman and Tversky, 1979 ; Simon, 1990 ; Kahneman and Sugden, 2005 ; Schilirò, 2018 ). Most authors further argued that the current definition of health utility unjustifiably adopts the premise of psychological egoism as research suggests that certain human behavior does not seem to be explained by self-regarding desires and posits that one must desire things beyond one’s own self-regarding desires in order to actualize them ( Kahneman and Tversky, 1979 ; Kahneman and Thaler, 1991 ; Kahneman et al, 1997 ; Kahneman and Sugden, 2005 ).…”

Section: Critical Perspectivesmentioning

confidence: 99%

Rethinking the eidos, genos, and diaphora of the health utility concept: a psychological perspective

et al. 2023

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The notion of utility gained a strong foothold in health economics over the last decades. However, the concept of health utility has not yet been decisively or irrefutably defined and the definitions that exist often do not take into account the current state of psychological literature. This perspective paper shows that the current definition of health utility emphasizes decision-making processes, deploys personal preferences, assumes psychological egoism, and attempts to objectively and cardinally measure utility. However, these foundational axioms that underly the current definition of health utility are not necessarily in concurrence with the current state of psychological literature. Due to these perceived shortcomings of the current health utility definition, it may be beneficial to redefine the concept of health utility in accordance with the current state of psychological literature. In order to develop such a revised definition of health utility the commonly deployed formula (Eidos = Genos + Diaphora) originating from Aristotle’s metaphysics is applied. The revised definition of health utility proposed in this perspective paper alludes to health utility as ‘the subjective value, expressed in terms of perceived pain or pleasure, that is attributed to the cognitive, affective and conative experience of one’s own physical, mental and social health state, which is determined through self-reflection and interaction with significant others’. Although this revised definition does neither replace nor supersede other conceptualizations of health utility, it may serve as a refreshing avenue for further discussion and could, eventually, support policymakers and health economists in operationalizing and measuring health utility in an even more accurate and veracious manner.

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“…Man is a rational animal, and it is assumed that he makes rational choices or rational behavior. Rational behavior implies a decision-making process that is grounded in making choices that result in the optimization of utility for an individual (Schiliro, 2018). The assumption behind this behavior is that people would prefer decisions that would create more utility for them than harm.…”

Section: Rational Consumptionmentioning

confidence: 99%

Development and validation of scale to measure responsible consumption

Jain

Dahiya²,

Tyagi³

et al. 2022

APJBA

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PurposeThe objective of this paper is to identify dimensions of responsible consumption from consumer perspective and develop a reliable and valid measurement scale.Design/methodology/approachThis paper has employed mixed methodology to develop items for responsible consumption. In first phase, experts' interviews were carried out to unearth the dimensions of responsible consumption. In second phase, quantitative survey was carried out to among consumers to measure their response. This was done using five-point Likert scale. The reliability and validity were ensured through empirical data online. Structural equation modeling was used to test the structural model.FindingsThe result showed that consumer perception of responsible consumption consists of five dimensions (Rationality, Sustainable Consumption, Local Consumption, Ethical Consumption and Minimalism). The result also showed strong relationship among satisfaction and responsible consumption dimensions.Practical implicationsIt will help policymakers to measure and promote responsible consumption thereby improving environmental performance and reducing carbon footprint.Originality/valueThis is the first study to develop valid and reliable instrument for responsible consumption. The findings will have several implications both theoretical and practical for policymakers and society.

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Economic Decisions and Simon’s Notion of Bounded Rationality

Cited by 11 publications

References 26 publications

Diversity of the physician workforce: Specialty choice decisions during medical school

Diversity of the physician workforce: Specialty choice decisions during medical school

Rethinking the eidos, genos, and diaphora of the health utility concept: a psychological perspective

Development and validation of scale to measure responsible consumption

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