An Algorithm for the Simulation of Bounded Rational Agents
AbstractNon-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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 15942.
Date of creation: 27 Jun 2009
Date of revision:
agent based modelling; bounded rationality; reinforcement learning; rule extraction;
Find related papers by JEL classification:
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-11 (All new papers)
- NEP-CBE-2009-07-11 (Cognitive & Behavioural Economics)
- NEP-CMP-2009-07-11 (Computational Economics)
- NEP-EVO-2009-07-11 (Evolutionary Economics)
- NEP-UPT-2009-07-11 (Utility Models & Prospect Theory)
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