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)
Date: 2009-06-27
New Economics Papers: this item is included in nep-cbe, nep-cmp, nep-evo and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://mpra.ub.uni-muenchen.de/19683/1/MPRA_paper_19683.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:15942

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