IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

The Foundations of Imperfect Decision Making

  • Tyson, Chris

    (Stanford U)

Registered author(s):

    A theory of decision-making is proposed that speaks to Herbert Simon's methodological critique of economics without resorting to excessive reductionism. Formally, the new theory removes the Contraction axiom of conventional choice theory (which is itself reviewed in detail). In its interpretation, the theory reflects a conceit that decision makers may not fully perceive their preferences among alternatives, with perceived preference being assumed to possess different sets of properties. A utility-based representation of the postulated behavior is obtained, and is seen to be reminiscent of Simon's notion of "satisficing."

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://gsbapps.stanford.edu/researchpapers/library/RP1714.pdf
    Download Restriction: no

    Paper provided by Stanford University, Graduate School of Business in its series Research Papers with number 1714.

    as
    in new window

    Length:
    Date of creation: Nov 2001
    Date of revision:
    Handle: RePEc:ecl:stabus:1714
    Contact details of provider: Postal:
    Stanford University, Stanford, CA 94305-5015

    Phone: (650) 723-2146
    Fax: (650)725-6750
    Web page: http://gsbapps.stanford.edu/researchpapers/
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Itzhak Gilboa & David Schmeidler, 1989. "Maxmin Expected Utility with Non-Unique Prior," Post-Print hal-00753237, HAL.
    2. Simon, Herbert A., 1978. "Rational Decision-Making in Business Organizations," Nobel Prize in Economics documents 1978-1, Nobel Prize Committee.
    3. Eytan Sheshinski, 2000. "Bounded Rationality and Socially Optimal Limits on Choice in a Self-Selection Model," Discussion Paper Series dp330, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem, revised Nov 2002.
    4. Simon, Herbert A, 1978. "Rationality as Process and as Product of Thought," American Economic Review, American Economic Association, vol. 68(2), pages 1-16, May.
    5. Wulf Gaertner & Yongsheng Xu, 1999. "On rationalizability of choice functions: A characterization of the median," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 16(4), pages 629-638.
    6. Nick Baigent & Wulf Gaertner, 1996. "Never choose the uniquely largest A Characterization," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 8(2), pages 239-249.
    7. W. Pesendorfer & F. Gul, 1999. "Temptation and Self-Control," Princeton Economic Theory Papers 99f1, Economics Department, Princeton University.
    8. Paola Manzini & Marco Mariotti, 2004. "Rationalizing Boundedly Rational Choice," Microeconomics 0407005, EconWPA, revised 21 Jul 2005.
    9. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, Oxford University Press, vol. 69(1), pages 99-118.
    10. Mark J. Machina & David Schmeidler, 1990. "A More Robust Definition of Subjective Probability," Discussion Paper Serie A 306, University of Bonn, Germany.
    11. Amartya Sen, 1969. "Quasi-Transitivity, Rational Choice and Collective Decisions," Review of Economic Studies, Oxford University Press, vol. 36(3), pages 381-393.
    12. José Apesteguía & Miguel A. Ballester, 2005. "Minimal Books Of Rationales," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0501, Departamento de Economía - Universidad Pública de Navarra.
    13. Gil Kalai & Ariel Rubinstein & Ran Spiegler, 2001. "Rationalizing Choice Functions by Multiple Rationales," Discussion Paper Series dp278, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    14. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    15. R. Aumann, 2010. "Correlated Equilibrium as an expression of Bayesian Rationality," Levine's Bibliography 513, UCLA Department of Economics.
    16. Jose Apesteguia & Miguel A. Ballester, 2007. "On the complexity of rationalizing behavior," Economics Working Papers 1048, Department of Economics and Business, Universitat Pompeu Fabra.
    17. Georges Bordes, 1976. "Consistency, Rationality and Collective Choice," Review of Economic Studies, Oxford University Press, vol. 43(3), pages 451-457.
    18. David Schmeidler, 1989. "Subjective Probability and Expected Utility without Additivity," Levine's Working Paper Archive 7662, David K. Levine.
    19. Simon, Herbert A, 1986. "Rationality in Psychology and Economics," The Journal of Business, University of Chicago Press, vol. 59(4), pages S209-24, October.
    20. Amartya K. Sen, 1971. "Choice Functions and Revealed Preference," Review of Economic Studies, Oxford University Press, vol. 38(3), pages 307-317.
    21. Sen, Amartya K, 1977. "Social Choice Theory: A Re-examination," Econometrica, Econometric Society, vol. 45(1), pages 53-89, January.
    22. Johnson, Mark R. & Dean, Richard A., 2001. "Locally complete path independent choice functions and their lattices," Mathematical Social Sciences, Elsevier, vol. 42(1), pages 53-87, July.
    23. Sen, A., 1996. "Maximisation and the Act of Choice," Papers 270, Banca Italia - Servizio di Studi.
    24. James A. Mirrlees., 1987. "Economic Policy and Nonrational Behaviour," Economics Working Papers 8728, University of California at Berkeley.
    25. John Conlisk, 1996. "Why Bounded Rationality?," Journal of Economic Literature, American Economic Association, vol. 34(2), pages 669-700, June.
    26. Sen, Amartya K, 1973. "Behaviour and the Concept of Preference," Economica, London School of Economics and Political Science, vol. 40(159), pages 241-59, August.
    27. Herzberger, Hans G, 1973. "Ordinal Preference and Rational Choice," Econometrica, Econometric Society, vol. 41(2), pages 187-237, March.
    28. Anand, Paul, 1993. "The Philosophy of Intransitive Preference," Economic Journal, Royal Economic Society, vol. 103(417), pages 337-46, March.
    29. Sen, Amartya, 1993. "Internal Consistency of Choice," Econometrica, Econometric Society, vol. 61(3), pages 495-521, May.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ecl:stabus:1714. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.