 Rational Decision-MakingRichard M. Adler
Chapter Chapter 5 in Bending the Law of Unintended Consequences, 2020, pp 63-77 from Springer Abstract: Abstract People employ both intuitive and deliberate thinking when making critical decisions. Chapter 4 described how our intuitions give rise to cognitive biases that impair critical decision-making and open the door to the Law of Unintended Consequences (LUC). Robert K. Merton also identified constraints on deliberate thinking as equally important contributors to LUC. This chapter examines Herbert Simon’s pivotal cognitive scientific research on these bounds on human rationality. Section 5.1 provides a brief sketch of Simon’s accomplishments. Section 5.2 introduces Simon’s concept of bounded rationality and contrasts it with Tversky and Kahneman’s research on cognitive biases. Sections 5.3 through 5.5 unpack the key elements of Simon’s research: his critique of rational choice theory, his cognitive model for deliberate (System 2) thinking, and his cognitive model of how people reason in order to make critical decisions. Section 5.6 recaps the significance of Simon’s research. Keywords: Herbert Simon; Bounded rationality; Satisficing; Rational actor theory; System 2 thinking (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-32714-9_5 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-32714-9_5 Access Statistics for this chapter More chapters in Springer Books from Springer |
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