Bounded Rationality and Bounded Individuality

John Davis

A chapter in A Research Annual, 2015, vol. 33, pp 75-93 from Emerald Group Publishing Limited

Abstract: This paper argues that since the utility function representation of the individual is derived from standard rationality theory, the view that rationality is bounded implies that individuality should be seen to be bounded as well. The meaning of this idea is developed in terms of two ways in which individuality is bounded, with one bound associated with bounded rationality in Kahneman and Tversky’s prospect theory and another bound associated with bounded rationality in Simon’s thinking. The two bounds on individuality are argued to be employed in agent-based modeling and social identity theory. How bounded individuality might be formally modeled is illustrated in an account of Kirman’s Marseille fish market analysis.

Keywords: Bounded rationality; bounded individuality; agent-based modeling; social identity theory; Marseille fish market; B20; B52 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... 3-415420150000033011
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:rhetzz:s0743-415420150000033011

DOI: 10.1108/S0743-415420150000033011

Access Statistics for this chapter

More chapters in Research in the History of Economic Thought and Methodology from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().