Bounded Rationality, Cognitive Maps, and Trial and Error Learning
AbstractThe term "bounded rationality" is meant to connote the reasoning capabilities of an actor who, on the one hand, has a goal to achieve and an at least partially formed theory as to how to achieve it, and on the other hand, that the theory is somewhat crude, likely will be revised in the course of the effort, and that success is far from assured. This article presents a theory of how trial and error learning interacts with theory modification in the course of problem solving under bounded rationality. The empirical focus is on efforts to advance a technology, especially medical practice, but the analysis is quite general. A central question explored is what makes progress in a field hard or easy.
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Bibliographic InfoPaper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2005/28.
Date of creation: 21 Dec 2005
Date of revision:
Bounded Rationality; Search; Progress;
Other versions of this item:
- Nelson, Richard R., 2008. "Bounded rationality, cognitive maps, and trial and error learning," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 78-89, July.
- NEP-ALL-2006-01-01 (All new papers)
- NEP-CBE-2006-01-01 (Cognitive & Behavioural Economics)
- NEP-EVO-2006-01-01 (Evolutionary Economics)
- NEP-INO-2006-01-01 (Innovation)
- NEP-KNM-2006-01-01 (Knowledge Management & Knowledge Economy)
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