Results 1 - 10 of 996

Bounding Rationality by Discounting Time

by Lance Fortnow, Rahul Santhanam
"... Abstract: Consider a game where Alice generates an integer and Bob wins if he can factor that integer. Traditional game theory tells us that Bob will always win this game even though in practice Alice will win given our usual assumptions about the hardness of factoring. We define a new notion of bou ..."
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of bounded rationality, where the payoffs of players are discounted by the computation time they take to produce their actions. We use this notion to give a direct correspondence between the existence of equilibria where Alice has a winning strategy and the hardness of factoring. Namely, under a natural

Reasoning the fast and frugal way: Models of bounded rationality.

by Gerd Gigerenzer , Daniel G Goldstein - Psychological Review, , 1996
"... Humans and animals make inferences about the world under limited time and knowledge. In contrast, many models of rational inference treat the mind as a Laplacean Demon, equipped with unlimited time, knowledge, and computational might. Following H. Simon's notion of satisncing, the authors have ..."
Abstract - Cited by 611 (30 self) - Add to MetaCart
Humans and animals make inferences about the world under limited time and knowledge. In contrast, many models of rational inference treat the mind as a Laplacean Demon, equipped with unlimited time, knowledge, and computational might. Following H. Simon's notion of satisncing, the authors

Simple Heuristics That Make Us Smart

by Gerd Gigerenzer, Peter M. Todd , 2008
"... To survive in a world where knowledge is limited, time is pressing, and deep thought is often an unattainable luxury, decision-makers must use bounded rationality. In this precis of Simple heuristics that make us smart, we explore fast and frugal heuristics—simple rules for making decisions with re ..."
Abstract - Cited by 456 (15 self) - Add to MetaCart
To survive in a world where knowledge is limited, time is pressing, and deep thought is often an unattainable luxury, decision-makers must use bounded rationality. In this precis of Simple heuristics that make us smart, we explore fast and frugal heuristics—simple rules for making decisions

Heterogeneous Beliefs and Routes to Chaos in a Simple Asset Pricing Model

by William A. Brock, Cars H. Hommes , 1998
"... This paper investigates the dynamics in a simple present discounted value asset pricing model with heterogeneous beliefs. Agents choose from a finite set of predictors of future prices of a risky asset and revise their `beliefs' in each period in a boundedly rational way, according to a `fitnes ..."
Abstract - Cited by 385 (27 self) - Add to MetaCart
This paper investigates the dynamics in a simple present discounted value asset pricing model with heterogeneous beliefs. Agents choose from a finite set of predictors of future prices of a risky asset and revise their `beliefs' in each period in a boundedly rational way, according to a

Near-optimal reinforcement learning in polynomial time

by Michael Kearns - Machine Learning , 1998
"... We present new algorithms for reinforcement learning, and prove that they have polynomial bounds on the resources required to achieve near-optimal return in general Markov decision processes. After observing that the number of actions required to approach the optimal return is lower bounded by the m ..."
Abstract - Cited by 304 (5 self) - Add to MetaCart
by the mixing time T of the optimal policy (in the undiscounted case) or by the horizon time T (in the discounted case), we then give algorithms requiring a number of actions and total computation time that are only polynomial in T and the number of states, for both the undiscounted and discounted cases

Developments in the Measurement of Subjective Well-Being

by Daniel Kahneman , Alan B Krueger - Psychological Science. , 1993
"... F or good reasons, economists have had a long-standing preference for studying peoples' revealed preferences; that is, looking at individuals' actual choices and decisions rather than their stated intentions or subjective reports of likes and dislikes. Yet people often make choices that b ..."
Abstract - Cited by 284 (7 self) - Add to MetaCart
of others and depart from the standard model of the rational economic agent in other ways. If people display bounded rationality when it comes to maximizing utility, then their choices do not necessarily reflect their "true" preferences, and an exclusive reliance on choices to infer what people

Lying for strategic advantage: Rational and boundedly rational misrepresentation of intentions

by P. Crawford, Herb Newhouse, Joel Sobel, Joel Watson - Amer. Econ. Rev , 2003
"... Starting from an example of the Allies ’ decision to feint at Calais and attack Normandy on D-Day, this paper models misrepresentation of intentions to competitors or enemies. Allowing for the possibility of bounded strategic rationality and rational players ’ responses to it yields a sensible accou ..."
Abstract - Cited by 111 (7 self) - Add to MetaCart
Starting from an example of the Allies ’ decision to feint at Calais and attack Normandy on D-Day, this paper models misrepresentation of intentions to competitors or enemies. Allowing for the possibility of bounded strategic rationality and rational players ’ responses to it yields a sensible

A Sieve Algorithm for the Shortest Lattice Vector Problem

by Miklós Ajtai , Ravi Kumar, et al. , 2001
"... We present a randomized 2 O(n) time algorithm to compute a shortest non-zero vector in an n-dimensional rational lattice. The best known time upper bound for this problem was 2 O(n log n) ..."
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We present a randomized 2 O(n) time algorithm to compute a shortest non-zero vector in an n-dimensional rational lattice. The best known time upper bound for this problem was 2 O(n log n)

Bounded Rationality

by David C. Parkes , 1999
"... Russell and Wefald (Russell & Wefald 1991) propose that the study of resource-bounded intelligent systems should be central to artificial intelligence. A resource-bounded agent acting in a timecritical domain must decide what to reason about, when, and for how long. Too little reasoning can lead ..."
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lead to mistakes, while too much can lead to lost opportunities. We use the term bounded rationality to mean reasoning that is optimal in a utility-maximizing sense, given the boundedresources of the agent, and the dynamic environment within which the agent is situated. Bounded rationality necessarily

Bounded rationality:

by Daniele Schilirò , 2012
"... Abstract° Classical mathematical algorithms often fail to identify in time when the international financial crises occur although, as the classical theory of choice would suggest, the economic agents are rational and the markets are or should be efficient and behave also rationally. This contributio ..."
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Abstract° Classical mathematical algorithms often fail to identify in time when the international financial crises occur although, as the classical theory of choice would suggest, the economic agents are rational and the markets are or should be efficient and behave also rationally
Results 1 - 10 of 996