1st Edition

Routledge Handbook of Bounded Rationality

Edited By Riccardo Viale Copyright 2021
    680 Pages 53 B/W Illustrations
    by Routledge

    680 Pages 53 B/W Illustrations
    by Routledge

    Herbert Simon’s renowned theory of bounded rationality is principally interested in cognitive constraints and environmental factors and influences which prevent people from thinking or behaving according to formal rationality. Simon’s theory has been expanded in numerous directions and taken up by various disciplines with an interest in how humans think and behave. This includes philosophy, psychology, neurocognitive sciences, economics, political science, sociology, management, and organization studies.

    The Routledge Handbook of Bounded Rationality draws together an international team of leading experts to survey the recent literature and the latest developments in these related fields. The chapters feature entries on key behavioural phenomena, including reasoning, judgement, decision making, uncertainty, risk, heuristics and biases, and fast and frugal heuristics. The text also examines current ideas such as fast and slow thinking, nudge, ecological rationality, evolutionary psychology, embodied cognition, and neurophilosophy. Overall, the volume serves to provide the most complete state-of-the-art collection on bounded rationality available.

    This book is essential reading for students and scholars of economics, psychology, neurocognitive sciences, political sciences, and philosophy.

    1 Why bounded rationality?

    Riccardo Viale

    2 What is bounded rationality?

    Gerd Gigerenzer

    PART I Naturalizing bounded rationality

    3 Towards a critical naturalism about bounded rationality

    Thomas Sturm

    4 Bounded rationality: the two cultures

    Konstantinos V. Katsikopoulos

    5 Seeking rationality: $500 bills and perceptual obviousness

    Teppo Felin and Mia Felin

    6 Bounded rationality, distributed cognition, and the computational modeling of complex systems

    Miles MacLeod and Nancy J. Nersessian

    7 Bounded rationality and problem solving: the interpretative function of thought

    Laura Macchi and Maria Bagassi

    8 Simon’s legacies for mathematics educators

    Laura Martignon, Kathryn Laskey, and Keith Stenning

    9 Bounded knowledge

    Cristina Bicchieri and Giacomo Sillari

    PART II Cognitive misery and mental dualism

    10 Bounded rationality, reasoning and dual processing

    Jonathan St. B. T. Evans

    11 Why humans are cognitive misers and what it means for the Great Rationality Debate

    Keith E. Stanovich

    12 Bounded rationality and dual systems

    Samuel C. Bellini-Leite and Keith Frankish

    13 Models and rational deductions

    Phil N. Johnson-Laird

    14 Patterns of defeasible inference in causal diagnostic judgment

    Jean Baratgin and Jean-Louis Stilgenbauer

    15 Attribute-based choice

    Francine W. Goh and Jeffrey R. Stevens

    PART III Occam’s razor: mental monism and ecological rationality

    16 Bounded reason in a social world

    Hugo Mercier and Dan Sperber

    17 Rationality without optimality: bounded and ecological rationality from a Marrian perspective

    Henry Brighton

    18 The winds of change: the Sioux, Silicon Valley, society, and simple heuristics

    Julian N. Marewski and Ulrich Hoffrage

    19 Ecological rationality: bounded rationality in an evolutionary light

    Samuel A. Nordli and Peter M. Todd

    20 Mapping heuristics and prospect theory: a study of theory integration

    Thorsten Pachur

    21 Bounded rationality for artificial intelligence

    Özgür Şimşek

    22 Psychopathological irrationality and bounded rationality: why is autism economically rational?

    Riccardo Viale

    PART IV Embodied bounded rationality

    23 Embodied bounded rationality

    Vittorio Gallese, Antonio Mastrogiorgio, Enrico Petracca, and Riccardo Viale

    24 Extending the bounded rationality framework: bounded-resource models in biology

    Christopher Cherniak

    25 How rationality is bounded by the brain

    Paul Thagard

    26 Building a new rationality from the new cognitive neuroscience

    Colin H. McCubbins, Mathew D. McCubbins, and Mark Turner

    PART V Homo Oeconomicus Bundatus

    27 Modeling bounded rationality in economic theory: four examples

    Ariel Rubinstein

    28 Bounded rationality, satisficing and the evolution of economic thought: diverse concepts

    Clement A. Tisdell

    29 Beyond economists’ armchairs: the rise of procedural economics

    Shabnam Mousavi and Nicolaus Tideman

    30 Bounded rationality and expectations in economics

    Ignazio Visco and Giordano Zevi

    31 Less is more for Bayesians, too

    Gregory Wheeler

    32 Bounded rationality as the cognitive basis for evolutionary economics

    Richard R. Nelson

    33 Beyond "bounded rationality": behaviours and learning in complex evolving worlds

    Giovanni Dosi, Marco Faillo, and Luigi Marengo

    PART VI Cognitive organization

    34 Bounded rationality and organizational decision making

    Massimo Egidi and Giacomo Sillari

    35 Attention and organizations

    Inga Jonaityte and Massimo Warglien

    36 The bounded rationality of groups and teams

    Torsten Reimer, Hayden Barber, and Kirstin Dolick

    37 Cognitive biases and debiasing in intelligence analysis

    Ian K. Belton and Mandeep K. Dhami

    PART VII Behavioral public policies: nudging and boosting

    38 "Better off, as judged by themselves": bounded rationality and nudging

    Cass R. Sunstein

    39 An alternative behavioural public policy

    Adam Oliver

    40 Against nudging: Simon-inspired behavioral law and economics founded on ecological rationality

    Nathan Berg

    41 Bounded rationality in political science

    Zachary A. McGee, Brooke N. Shannon, and Bryan D. Jones

    42 Layering, expanding, and visualizing: lessons learned from three "process boosts" in action

    Valentina Ferretti

    43 Cognitive and affective consequences of information and choice overload

    Elena Reutskaja, Sheena Iyengar, Barbara Fasolo, and Raffaella Misuraca

    44 How much choice is "good enough"?: moderators of information and choice overload

    Raffaella Misuraca, Elena Reutskaja, Barbara Fasolo, and Sheena Iyengar


    Riccardo Viale is Full Professor of Cognitive Economics and Behavioural Sciences in the Department of Economics at the University of Milano-Bicocca, Italy. He is also the founder and General Secretary of the Herbert Simon Society.

    "From the studies and exchanges that lead Viale to conduct his research and teach in the most advanced universities in the world, the network of scholars was born who, on the basis of each person's skills, he drew on to compose the Handbook of Bounded Rationality...[This] network made up of over seventy scholars helps to enter into what remains one of the great mysteries of the human mind: how and why we make a decision rather than another." -Corriere della Sera