Bounded-Rationality Models: Tasks to Become Intellectually Competitive

Ronald Harstad and Reinhard Selten

Journal of Economic Literature, 2013, vol. 51, issue 2, 496-511

Abstract: Research in experimental economics has cogently challenged the fundamental precept of neoclassical economics that economic agents optimize. The last two decades have seen elaboration of boundedly rational models that try to move away from the optimization approach, in ways consistent with experimental findings. Nonetheless, the collection of alternative models has made little headway supplanting the dominant paradigm. We delineate key ways in which neoclassical microeconomics holds continuing and compelling advantages over bounded-rationality models, and suggest, via a few examples, the sorts of further, difficult pushes that would be needed to redress this state of affairs. Closer collaboration between theoretic modeling and experiments is clearly seen to be necessary.

JEL-codes: B40 C72 C90 D01 D21 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/jel.51.2.496
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Citations: View citations in EconPapers (53)

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Journal Article: Bounded-rationality models:tasks to become intellectually competitive (2014)
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