Search results for "Bounded rationality"
showing 10 items of 15 documents
A Bacterial-Based Algorithm to Simulate Complex Adaptative Systems
2014
Paper presented at the 13th International Conference on Simulation of Adaptive Behavior which took place at Castellón, Spain in 2014, July 22-25. Bacteria have demonstrated an amazing capacity to overcome envi-ronmental changes by collective adaptation through genetic exchanges. Using a distributed communication system and sharing individual strategies, bacteria propagate mutations as innovations that allow them to survive in different envi-ronments. In this paper we present an agent-based model which is inspired by bacterial conjugation of DNA plasmids. In our approach, agents with bounded rationality interact in a common environment guided by local rules, leading to Complex Adaptive Syste…
An evolutionary model of voting
2001
Collective allocation of resources that takes place in po- litical markets is characterized by the complex exchange that emerges among the individuals involved. Traditional Public Choice models de- part from individual rational choice in a setup in which many of its strict requirements need not hold. This paper introduces a model of social interaction among agents in a simple political market which de- parts from bounded rationality and evolutionary dynamics as the key mechanisms that drive individual behavior. Learning plays a signicant role as it allows to establish an individual link between decisions and collective outcomes. The model is that of a representative democracy with two parti…
Inferring Cognitive Heterogeneity From Aggregate Choices
2020
Theories of bounded rationality often assume a rich dataset of choices from many overlapping menus, limiting their practical applicability. In contrast, we study the problem of identifying the distribution of cognitive characteristics in a population of agents from a minimal dataset that consists of aggregate choice shares from a single menu, and includes no observable covariates of any kind. With homogeneous preferences, we find that “consideration capacity” and “consideration probability” distributions can both be recovered effectively if the menu is sufficiently large. This remains true generically when tastes are heterogeneous with a known distribution. When the taste distribution is un…
Cognitive and Affective Consequences of Information and Choice Overload
2021
When interviewed in 1992 in Pittsburgh, Pennsylvania, the Nobel laureate Herbert Simon described a paradox at the heart of living in an economy that made every effort to design and produce ever more “choice alternatives” but that simultaneously allocated very little energy to encouraging people to devote the attention and time actually required to choose. He gave the example of a decision to buy a new house, commenting: “Before you even start the choice process, somebody has presented you with this, and this, and this house” (UBS, 1992). The overabundance of alternatives was lamented by Simon in 1992, when computing power was slower. It is all the more alarming in the modern and constantly …
Journal of Economics and Management Research, Vol. 3
2014
Igo Cals. Bounded Rationality Concept and Farming Values in Latvian Agricultural Sector ; Dagnija Daņēviča, Ieva Aizsila, Roberts Ikaunieks. Audit Quality Aspects of Cooperation Between Certified Auditor and Audited Entity ; Gyula Fülöp, Bettina Hódi Hernádi. Comparison of Traditional, Environmental and Sustainability Accounting Systems ; Svetlana Jesiļevska. Similarities and Differences of Conducting Innovation Survey – Latvian and Estonian Approaches ; Silvija Kristapsone. Subjective Assessment by Teachers and Other Professionals of Well-being in Latvia in Years 2011/2012 ; Olga Rajevska. Pension Statistics in Latvia: Resources and Weaknesses ; Christin Richter. Current Developments in Ri…
Marginal contribution, reciprocity and equity in segregated groups: Bounded rationality and selforganization in social networks
2007
We study the formation of social networks that are based on local interaction and simple rule following. Agents evaluate the profitability of link formation on the basis of the Myerson-Shapley principle that payoffs come from the marginal contribution they make to coalitions. The NP-hard problem associated with the Myerson-Shapley value is replaced by a boundedly rational 'spatially' myopic process. Agents consider payoffs from direct links with their neighbours (level 1), which can include indirect payoffs from neighbours' neighbours (level 2) and up to M-levels that are far from global. Agents dynamically break away from the neighbour to whom they make the least marginal contribution. Com…
A Reinforcement Learning Approach for User Preference-aware Energy Sharing Systems
2021
Energy Sharing Systems (ESS) are envisioned to be the future of power systems. In these systems, consumers equipped with renewable energy generation capabilities are able to participate in an energy market to sell their energy. This paper proposes an ESS that, differently from previous works, takes into account the consumers’ preference, engagement, and bounded rationality. The problem of maximizing the energy exchange while considering such user modeling is formulated and shown to be NP-Hard. To learn the user behavior, two heuristics are proposed: 1) a Reinforcement Learning-based algorithm, which provides a bounded regret and 2) a more computationally efficient heuristic, named BPT- ${K}…
Memetic Engineering for Permanent Education in Line with Sustainable Growth
2012
Given the recent point of view of the European Commission regarding the implementation of a new strategy for sustainable growth and jobs, this paper emphasises the opportunity and urgency of supporting the EU 2020 strategy, providing an appropriate educational tool for the knowledge society. The main objectives are: a. adapting memetic engineering expressed in terms of General System Theory to the teaching component of permanent education based on bounded rationality and "Just in Time"as key tools for fighting cognitive chaoplexity in the post-industrial era; b. facilitating the use of memetic engineering based on its double-faceted nature: as both positive and negative feedback; c. extendi…
Sustainable Development: E-teaching (now) for Lifelong E-Learning
2011
Abstract To attain knowledge, add things every day. To attain wisdom, remove things every day. LAO TZU , “Tao Te Ching” The paper aims at convincing psychologist to cooperate in permanent education, by giving them a general idea about the first objectives of the PhD thesis titled “Nondeterministic e-Teaching for Sustainable Development in Rapidly Changing Environments”: a) Validating the role of e-teaching for sustainable development in Eastern Europe in line with the Europe 2020 strategy. (Europe 2020 is a 10-year strategy proposed by the European Commission on 3 March 2010 for reviving the economy of the European Union. It aims at “smart, sustainable, inclusive growth” with greater coordi…
Artificial Intelligence + Distributed Systems = Agents
2009
The connection with Wirth’s book goes beyond the title, albeit confining the area to modern Artificial Intelligence (AI). Whereas thirty years ago, to devise effective programs, it became necessary to enhance the classical algorithmic framework with approaches applied to limited and focused subdomains, in the context of broad-band technology and semantic web, applications - running in open, heterogeneous, dynamic and uncertain environments-current paradigms are not enough, because of the shift from programs to processes. Beside the structure as position paper, to give more weight to some basic assertions, results of recent research are abridged and commented upon in line with new paradigms.…