A Perspective on judgment and choice: Mapping bounded rationality
This is where a leader's bounded rationality
, based on what they think they know, can result in less-than-optimal decision-making (Simon, 1947).
A key concept within bounded rationality
is that of limited information and the importance of rapid, if not immediate, feedback.
This paper contributes to the intuition on price setting under bounded rationality
by developing a model in which the share of firms that have up-to-date information on relative prices to establish the optimal price follows evolutionary dynamics (with and without mutation), and not a random dynamics a la Calvo (1983), as in Mankiw and Reis (2002), and the related literature.
MUNICIPAL BUDGETS, THE GREAT RECESSION, AND BOUNDED RATIONALITY
These expressions of bounded rationality
show that in many situations, individuals are incapable of rational utility-maximization because of the way the human mind processes information and reacts to particular circumstances.
In other words, norms of cooperation should include rules that help people make better decisions under bounded rationality
Against the background of the idea of Levitt that MNEs should not customize products and services to cultural differences, but rather should offer standardized products and services because of the highly homogenized global consumer preferences, chapter 9 demonstrates arguments, under which circumstances Levitt's (1983) idea leads to bounded rationality
problems by MNE managers, managers' overestimation of the transferability, deployment and exploitation potential of firm-specific advantages and results in defective global strategies.
implies that there are limits to the ability of stewards to align their interests with those of the organization, as well as limits to the ability of owners to properly evaluate the pro-organizational intentions, abilities, and actions of stewards.
Gruneisen presented his preliminary findings June 10 at the Summer Institute on Bounded Rationality
, a weeklong set of seminars and workshops for young scientists, at the Max Planck Institute for Human Development.
It is not entirely fair to simply say humans are totally irrational; the psychological theory of bounded rationality
cuts us some slack.
Further, this bounded rationality
was proportional to the uncertainties and complexity associated with transactions (Rindfleisch & Heide, 1997).