Routledge Handbook of Bounded Rationality  book cover
1st Edition

Routledge Handbook of Bounded Rationality

Edited By

Riccardo Viale

ISBN 9781138999381
Published December 3, 2020 by Routledge
680 Pages 53 B/W Illustrations

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Book Description

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.

Table of Contents

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

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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