An Algorithm for the Simulation of Bounded Rational Agents

Stephan Schuster

MPRA Paper from University Library of Munich, Germany

Abstract: Non-classical models of economic behaviour, usually summarised under the notion of 'Bounded Rationality' criticise the assumptions of the standard economic model - hyperrationality, perfect and costless information, and unlimited mental processing capabilities. However, alternative approaches have either remained very simple or purely descriptive. Here, a computational approach is presented based on Simon's concept of bounded rationality and satisficing as a compromise between the oversimplification of analytical and the descriptiveness of rich cognitive models.

Keywords: agent based modelling; bounded rationality; reinforcement learning; rule extraction (search for similar items in EconPapers)
JEL-codes: C63 D83 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-cmp, nep-evo and nep-upt
Date: Written

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