Advertisement

Developing Simon’s Bounded Rationality

  • Riccardo Viale
Chapter

Abstract

Herbert Simon is the father of the empirically based microeconomics. His economic theory is founded on a new concept of economic rationality. Herbert Simon’s contribution to the theory of economic rationality can be characterized by one pars destruens and one part costruens. The first part is the attack to the neoclassical Olympic rationality. The second is the proposal of an empirically based bounded rationality theory. In this chapter I will develop and assess the first and second contribution of Simon showing that while the first is justified theoretically and empirically the second shows some serious flaws.

Keywords

True Belief Rationality Concept Bounded Rationality Reflective Equilibrium Inferential Rationality 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Anderson, J. (1983). The architecture of cognition. Cambridge Mass: Harvard University Press.Google Scholar
  2. Becker, G. S. (1981). A treatise on the family. Cambridge: Harvard University Press.Google Scholar
  3. Bower, G. H., & Glass, A. L. (1976). Structural units and the redintegrative power of picture fragments. Journal of experimental psichology, 2, 456–466.Google Scholar
  4. Carnap, R. (1950). Logical foundations of probability. Chicago: Chicago U.P.Google Scholar
  5. Chapman, L. J., & Chapman, J. P. (1959). Atmosphere effect re-examined. Journal of Experimental Psychology, 58, 220–6.CrossRefGoogle Scholar
  6. Cherniak, C. (1986). Minimal rationality. Cambridge, Mass.: The MIT Press.Google Scholar
  7. Cohen, J. L. (1981). Can human irrationality be experimentally demonstrated? The Behavioural and Brain Sciences, 4, 318–20.Google Scholar
  8. de Finetti, B. (1931). Sul significato soggettivo delle probabilità. Fundamenta Mathematicae, 17, 298–329.Google Scholar
  9. Deutsch, D., & Feroe, J. (1981). The internal representation of pitch sequences in tonal music. Psychological Review, 88, 503–522.CrossRefGoogle Scholar
  10. Donovan, A., Laudan, L., & Laudan, R. (Eds.). (1988). Scrutinizing science. Empirical studies of scientific change. Dordrecht: Kluwer Academic Publishers.Google Scholar
  11. Eddy, D. M. (1982). Probabilistic reasoning in clinical medicine: Problems and opportunities. In D. Kanheman, P. Slovic, & A. Tversky (Eds.), Judgment under uncertainty: Heuristics and biases. Cambridge: Cambridge University Press.Google Scholar
  12. Edwards, W. (1968). Conservatism in human information processing. In B. Kleinmuntz (Ed.), Formal representation of human judgement. New York: Wiley.Google Scholar
  13. Goldman, A. (1986). Epistemology and cognition. Cambridge Mass: Harvard University Press.Google Scholar
  14. Goldman, A. (1993). Philosophical application of cognitive science. Boulder: Westview Press.Google Scholar
  15. Goodman, N. (1965). Fact fiction and forecast. Indianapolis: The Bobbs-Merril.Google Scholar
  16. Hogarth, R., & Reder, M. (1987). Introduction: Perspectives from economics and psychology. In R. Hogarth & M. Reder (Eds.), Rational choice. Chicago: The University of Chicago Press.Google Scholar
  17. Holland, J. M., Holyoak, K. J., Nisbett, R. E., & Thagard, P. R. (1986). Induction. Cambridge Mass.: MIT Press.Google Scholar
  18. Hutchinson, T. W. (1938). The significance and basic postulates of economic theory. New York: August M. Kelley.Google Scholar
  19. Johnson Laird, P. (1983). Mental models. Cambridge: Cambridge University Press.Google Scholar
  20. Johnson Laird, P. (1988). The computer and the mind. London: William Collins Sons & Co. Italian Translation, Il Mulino, Bologna, 1990.Google Scholar
  21. Johnson-Laird, P. N., & Steedman, M. (1978). The psychology of syllogisms. Cognitive Psychology, 10(1), 64–99.CrossRefGoogle Scholar
  22. Kahneman, A., & Tversky, D. (1987). Rational choice and the framing of decisions. In R. Hogarth & M. Reder (Eds.), Rational choice. Chicago: The University of Chicago Press.Google Scholar
  23. Keynes, J. M. (1936). The general theory of employment, interest and money. London: Mac Millan.Google Scholar
  24. Keynes, J. N. (1917). The scope and method of political economy (4th ed.). London: Mc Millan.Google Scholar
  25. Kolmogorov, A. N. (1950). A foundation of probability. New York: Chelsea.Google Scholar
  26. Kosslyn, S. (1981). Image and mind. Cambridge, Mass.: Harvard University Press.Google Scholar
  27. Lakatos, I. (1970). Falsification and the methodology of scientific research programmes. In I. Lakatos & A. Musgrave (Eds.), Criticism and the growth of knowledge. Cambridge: Cambridge University Press.Google Scholar
  28. Laudan, L. (1984). Science and its values. Berkeley: University of California Press.Google Scholar
  29. Lucas, R. E. (1981). Studies in business cycle theory. Cambridge Mass: The MIT Press.Google Scholar
  30. Marr, D. (1982). Vision. San Francisco: Freeman.Google Scholar
  31. Mellor, D. H. (1971). The matter of chance. Cambridge: Cambridge U.P.Google Scholar
  32. Mill, J. S. (1848). Principles of political economy. London: Parker.Google Scholar
  33. Nisbett, R. E., & Ross, L. (1980). Human inference: Strategies and shortcomings of social judgement. Englewood Cliffs: Prentice-Hall. Italian Translation, 1989, Bologna: Il Mulino.Google Scholar
  34. Popper, K. (1959). The logic of scientific discovery. London: Hutchinson.Google Scholar
  35. Quine, W. O. (1969). Epistemology naturalized. In W. V. Quine (Ed.), Ontological relativity and other essays. New York: Columbia University Press.Google Scholar
  36. Ramsey, F. P. (1931). The foundations of mathematics. London: Routledge.Google Scholar
  37. Reichenbach, H. (1949). The theory of probability. Berkeley: University of California Press.Google Scholar
  38. Rips, L. J., & Marcus, S. L. (1977). Supposition and the analysis of conditional sentences. Hillsdale N.Y.: Erlbaum.Google Scholar
  39. Rock, I. (1983). The logic of perception. Cambridge Mass: The MIT Press.Google Scholar
  40. Senior, N. (1836/1965). The outline of the science of political economy. New York: A.M. Kelley.Google Scholar
  41. Simon, H. A. (1987). Rationality in psychology and economics. In R. Hogarth & M. Reder (Eds.), Rational choice. Chicago: University of Chicago Press.Google Scholar
  42. Stich, S., & Nisbett, R. (1980). Justification and the psychology of human reasoning. Philosophy of Science, 47, 188–202.CrossRefGoogle Scholar
  43. Stich, S. (1990). The fragmentation of reason. Cambridge, Mass.: The MIT Press.Google Scholar
  44. Thaler, R. (1987). The psychology and economics. In R. Hogarth & M. Reder (Eds.), Rational choice. Chicago: The University of Chicago Press.Google Scholar
  45. Tversky, A., & Kahneman, D. (1973). Availability: A heuristic for judging frequency and probability. Cognitive Psychology, 5, 207–232.CrossRefGoogle Scholar
  46. Tversky, A., & Kahneman, D. (1980). Causal schemas in judgements under uncertainty. In M. Fishbein (Ed.), Progress in social psychology. Hillsdale, N. J.: Erlbaum.Google Scholar
  47. Ullman, S. (1979). The interpretation of visual motion. Cambridge, Mass.: The MIT Press.Google Scholar
  48. Viale, R. (1989). Epistemologia, cognizione e razionalità deduttiva. In R. Viale (Ed.), Mente umana mente artificiale. Milano: Feltrinelli.Google Scholar
  49. Viale, R. (1991). Metodo e società nella scienza. Milano: Franco Angeli.Google Scholar
  50. Viale, R. (1992/2008). Cognitive constraints of economic rationality. In H. Simon, M. Egidi, R. Marris, & R. Viale (Eds.), Economics, bounded rationality and the cognitive revolution. Aldershot: Edward Elgar.Google Scholar
  51. Viale, R., et al. (1993). Cognizione e razionalità delle credenze nelle scienze sociali. In R. Boudon (Ed.), Teoria della razionalità. Roma: Borla.Google Scholar
  52. Viale, R. (2001a). Truth, science, and politics: An analysis of social epistemology. In R. Viale (Ed.), Knowledge and politics. Heidelberg: Physica-Verlag.CrossRefGoogle Scholar
  53. von Mises, R. (1957). Probability, statistics and truth. London: Allen & Unwin.Google Scholar
  54. Woodworth, R. S., & Sells, S. B. (1935). An atmosphere effect in formal syllogistic reasoning. Journal of Experimental Psychology, 18, 459–82.CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2012

Authors and Affiliations

  1. 1.Rosselli FoundationTorinoItaly

Personalised recommendations