Visions Of Rationality

What is Bounded Rationlity?

“Broadly stated, the task is to replace the global rationality of economic man with a kind of rational behavior that is compatible with the access to information and the computational capacities that are actually possessed by organisms, including man, in the kinds of environments in which such organisms exist.”

Bounded rationality in concerned with the way humans use their brains to understand the world around them, make decisions, and determine the risks associated with a given course of action.

“What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention, and a need to allocate that attention efficiently among the overabundance of information sources that might consume it. ” – Herbert Simon

The purposes of this blog are modest at best. One aim is to provide synergy of ideas, so as to approach problem solving more effectively. We will employ an optimistic approach using the most practical elements of important subjects.

During the Age of Reason, contagious optimism helped fuel an intellectual revolution. It is without much surprise that most of the world’s greatest Polymaths lived during this period. One could argue that their gradual reduction in the numbers lies in the development of information systems. Proper knowledge requirements have risen to such an extent, that an individual needs much more focus to become an « expert » in a single field – let alone in various fields.

I would argue that whilst general requirements have increased, so too has general cynicism, which inebriates our ability to reach desired potential. Being an inherent optimist is a key trait to success. Therefore we will steer clear of negative activities and focus on being as positively rational and objective as possible.

There are various books about bounded rationality that I recommend reading. They include:

  • Economics, Bounded Rationality and the Cognitive Revolution by Herbert Simon, Massimo Egidi, Riccardo Viale, and Robin Marris
  • Bounded Rationality: The Adaptive Tookbox by Gerd Gigerenzer and Reinhard Shelten
  • Cognitive Economics: An Interdisciplinary Approach by Paul Bourgine and Jean-Pierre Nadal
  • Bounded Rationality in Decision Making by Nielsen
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