full rationality
Recently Published Documents


TOTAL DOCUMENTS

34
(FIVE YEARS 10)

H-INDEX

7
(FIVE YEARS 0)

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Barbara Luppi

Abstract Empirical and experimental evidence shows that individuals exhibit behavioral biases in their decision-making processes that depart from the full rationality paradigm. This paper discusses the effectiveness of alternative debiasing strategies, designed to induce socially preferable outcomes. Following Jolls, C. and Sunstein, C.R. (2006). Debiasing through law. J. Leg. Stud. 35: 199–242, this paper examines legal strategies that aim at “debiasing through law”, attempting to reduce or eliminate boundedly rational behavior. Alternatively, policymakers can implement “insulating” legal strategies that separate the outcome from the biased behavior, without attempting to eradicate behavioral biases from the decision-making process. This paper compares these strategies in many areas, such as tort law, consumer safety law, and property law.


Linguistics ◽  
2021 ◽  

Game theoretic approaches to pragmatics characterize pragmatic inference as a product of interlocutors’ reasoning about their own and others’ possible linguistic choices. These choices are a function of their preferences over communicative outcomes. They are a product of what is communicated and how it is communicated, sometimes also factoring in beliefs about others’ preferences and beliefs. For instance, a speaker may prefer to bring a message across in a polite manner rather than in a more straightforward one, or succinctness may be preferred over long-windedness. At a more fundamental level, a speaker’s goal may be to convey his or her beliefs truthfully, or, the goal may be to deceive one’s audience. Hearers can have other, possibly opposed, preferences. Such subjective preference measures—captured by so-called utility functions—can thereby characterize a wide array of communicative scenarios, ranging from fully cooperative ones to ones with conflicts of interest. They also do away with the need to explicitly formulate conversational principles. Instead, pragmatic inference is directly rooted in interlocutors’ preferences and beliefs. Another cornerstone of game-theoretic approaches to pragmatics is that they often make the degree of mutual reasoning that interlocutors engage in explicit. While the simplest reasoners take only themselves as their reference point, more sophisticated ones iteratively reason about their partner’s choices and reasoning. A final key component common to these approaches is that they take a stance on interlocutors’ rationality: the degree to which they care about matters such as communicative success or manner. While some approaches assume full rationality, with interlocutors always acting according to what best fulfills their preferences, others weaken this assumption to allow for deviations. This makes them particularly suitable to predict and inform empirical data.


Financial markets are influenced by various factors but the most important factors is the reaction as well as perception of the people. Basically there are two discipline of financial market study i.e., Traditional finance and the new development called Behaviourial finance.Traditional finance foundation is truly based on efficient market concept&Behavioral finance argues that some financial phenomena can plausibly be understood using models in which some agents are not fully rational. The field has two building blocks: limits to arbitrage, which argues that it can be difficult for rational traders to undo the dislocations caused byless rational traders; and psychology, which catalogues the kinds of deviations from full rationality we might expect to see. We close by assessing progress in the field and speculating about its future course. In this paper an attempt has been made to highlight the shortcomings of the traditional finance theories as pointed out by behavioural finance supporters and also a discussion on the significance of behavioural finance. While conventional academic finance emphasizes theories such as modern portfolio theory and the efficient market hypothesis, the emerging field of behavioral finance investigates the psychological and sociological issues that impact the decision-making process of individuals, groups, and organizations. This paper will discuss some general principles of behavioral finance including the following: overconfidence, financial cognitive dissonance, the theory of regret, and prospect theory. In conclusion, the paper will provide strategies to assist individuals to resolve these “mental mistakes and errors” by recommending some important investment strategies for those who invest in stocks and mutual funds


Mathematics ◽  
2020 ◽  
Vol 8 (1) ◽  
pp. 45
Author(s):  
Wensheng Jia ◽  
Xiaoling Qiu ◽  
Dingtao Peng

In this paper, our purpose is to investigate the vector equilibrium problem of whether the approximate solution representing bounded rationality can converge to the exact solution representing complete rationality. An approximation theorem is proved for vector equilibrium problems under some general assumptions. It is also shown that the bounded rationality is an approximate way to achieve the full rationality. As a special case, we obtain some corollaries for scalar equilibrium problems. Moreover, we obtain a generic convergence theorem of the solutions of strictly-quasi-monotone vector equilibrium problems according to Baire’s theorems. As applications, we investigate vector variational inequality problems, vector optimization problems and Nash equilibrium problems of multi-objective games as special cases.


Author(s):  
Marija Kuzmanovic

Traditional decision-making models assume the full rationality of all actors. Nevertheless, the practice has shown that the behavior and choices of actors are influenced by many factors such as motives, beliefs, opinions, personal and social preferences, as well as cognitive biases. Moreover, it has already been proven that people have limitations in their ability to collect relevant information and respond to them, i.e. they are bounded rational. All this has contributed to the development of behavioral models in many disciplines including game theory. This paper provides a detailed review of the literature regarding behavioral models of strategic decision making. Bounded rationality and other cognitive biases in the strategic interactions are illustrated through the findings of numerous experimental studies.


2020 ◽  
Vol 60 (4) ◽  
pp. 373-391
Author(s):  
Andy German ◽  

In her 2014 monograph, Sarah Broadie argues that Timaeus’s cosmology points to a radical Platonic insight: the full rationality of the cosmos requires the existence of individualized, autonomous, and finite beings like us. Only human life makes the cosmos truly complete. But can Timaeus do full justice to the uniquely human way of being and hence to his own insight? My paper argues that he cannot and that Plato means for us to see that he cannot, by showing how Timaeus treats a famous Platonic theme: eros. Timaeus describes human perfection as assimilation to the mathematical proportions of the cosmos, but by comparing Timaeus with the Symposium I show that, given his deeply mathematized conception of reason, Timaeus cannot provide what Diotima can: a phenomenologically satisfactory account of how we come to identify ourselves with this perfection. Such identification is a transformation in our self-understanding explicable only because of the desirous and reflexive character of the soul. Expressing this character, however, requires combining the mathematical with a poetic, or even mantic, register. Only these sensibilities together grant access to Plato’s cosmology in its fullness.


Author(s):  
Shabnam Mousavi ◽  
Jay Schulkin

A notion of rationality represents a structure that can be used to explain, evaluate, and recommend a certain course of action. Full rationality, independent of context, builds such a structure based on the rules of logic and statistical inference. Ecological rationality, on the other hand, focuses on the interaction between the human mind and the task environment. This chapter argues that ecological rationality can provide an operational framework for evolutionary medicine based on compatible foundational concepts. Risk literacy and numeracy methods developed on the basis of an adaptive toolbox approach constitute effective education tools. An evolutionary approach to medical education facilitates the integration of these accessible and well-retained educational tools for physicians and their patients, and can enrich public health policymaking.


2019 ◽  
pp. 49-61
Author(s):  
Henry Sidgwick

Henry Sidgwick’s dualism of practical reason is a problem confronting the ethical enterprise. It’s the tension between one’s own happiness and the happiness of others; or between rational self-love and rational benevolence. Sidgwick thought each impulse was equally legitimate, yet on occasion they encounter an intractable tension. The full rationality of morality requires the resolution of this dualism, but Sidgwick didn’t see such a rapprochement as forthcoming. The only potential solution he could see is a theistic one, according to which a providential God ensures their harmony, but Sidgwick himself refused to follow this path. Nevertheless, his writings include the seeds for such a moral argument, predicated on the full rationality of morality.


2019 ◽  
Author(s):  
Matthias Weber

I provide a simple two-period model comparing lump-sum taxes with proportional labor taxes. The difference to the classical optimal taxation literature is that I introduce a behavioral twist according to which people’s aspirations change from one period to another as suggested by empirical evidence. It turns out that the policy implication from this model can differ significantly from the one assuming full rationality. In the behavioral model, a lump-sum tax is much less attractive. This paper does not aim at providing a full-fledged quantitative model, it should rather be seen as a cautionary tale about the robustness of classical optimal taxation results when deviating from full rationality.


Sign in / Sign up

Export Citation Format

Share Document