(un)bounded rationality in decision making and game theory – back to square one(联合国)有限理性决策和博弈理论,从头再来.pdfVIP
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(un)bounded rationality in decision making and game theory – back to square one(联合国)有限理性决策和博弈理论,从头再来
Games 2010, 1, 53-65; doi:10.3390/g1010053
OPEN ACCESS
games
ISSN 2073-4336
/journal/games
Article
(Un)Bounded Rationality in Decision Making and
Game Theory – Back to Square One?
Werner Güth 1,* and Hartmut Kliemt 2
1 Max Planck Institute of Economics, Kahlaische Straße 10, 07745 Jena, Germany
2 Frankfurt School of Finance and Management, Sonnemannstraße 9-11, 60314 Frankfurt am Main,
Germany; E-Mail: hartmut.kliemt@t-online.de
* Author to whom correspondence should be addressed: E-Mail: gueth@econ.mpg.de.
Received: 18 February 2010; in revised form: 15 March 2010 / Accepted: 19 March 2010 /
Published: 23 March 2010
Abstract: Game and decision theory start from rather strong premises. Preferences,
represented by utilities, beliefs represented by probabilities, common knowledge and
symmetric rationality as background assumptions are treated as “given.” A richer language
enabling us to capture the process leading to what is “given” seems superior to the
stenography of decision making in terms of utility cum probability. However, similar to
traditional rational choice modeling, boundedly rational choice modeling, as outlined here,
is far from being a “global” theory with empirical content; rather it serves as a tool to
formulate “local” theories with empirical content.
Keywords: bounded rationality; methodology of decision; game theory
JEL: C70; B40; A12
1.
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