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.

chapter 1|54 pages

Why bounded rationality?

ByRiccardo Viale

chapter 2|15 pages

What is bounded rationality?

ByGerd Gigerenzer

part I|112 pages

Naturalizing bounded rationality

chapter 3|17 pages

TOWARDS A CRITICAL naturalism ABOUT bounded rationality

ByThomas Sturm

chapter 4|13 pages

Bounded rationality

The two cultures
ByKonstantinos V. Katsikopoulos

chapter 5|17 pages

Seeking rationality $500 bills and perceptual obviousness

ByTeppo Felin, Mia Felin

chapter 6|11 pages

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

ByMiles MacLeod, Nancy J. Nersessian

chapter 7|24 pages

Bounded rationality and problem solving

The interpretative function of thought
ByLaura Macchi, Maria Bagassi

chapter 8|15 pages

Simon's legacies for mathematics educators

ByLaura Martignon, Kathryn Laskey, Keith Stenning

chapter 9|13 pages

Bounded knowledge

ByCristina Bicchieri, Giacomo Sillari

part II|71 pages

Cognitive misery and mental dualism

chapter 10|11 pages

Bounded rationality, reasoning and dual processing

ByJonathan St. B. T. Evans

chapter 12|10 pages

Bounded rationality and dual systems

BySamuel C. Bellini-Leite, Keith Frankish

chapter 13|11 pages

Models and rational deductions

ByPhil N. Johnson-Laird

chapter 14|14 pages

Patterns of defeasible inference in causal diagnostic judgment

ByJean Baratgin, Jean-Louis Stilgenbauer

chapter 15|12 pages

Attribute-based choice

ByFrancine W. Goh, Jeffrey R. Stevens

part III|119 pages

Occam's razor

chapter 16|11 pages

Bounded reason in a social world

ByHugo Mercier, Dan Sperber

chapter 17|12 pages

Rationality without optimality

Bounded and ecological rationality from a Marrian perspective
ByHenry Brighton

chapter 18|33 pages

The winds of change

The Sioux, Silicon Valley, society, and simple heuristics
ByJulian N. Marewski, Ulrich Hoffrage
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chapter 19|11 pages

Ecological rationality

Bounded rationality in an evolutionary light
BySamuel A. Nordli, Peter M. Todd

chapter 20|14 pages

Mapping heuristics and prospect theory

A study of theory integration
ByThorsten Pachur

chapter 21|11 pages

Bounded rationality for artificial intelligence

ByÖzgür Şimşek

chapter 22|25 pages

Psychopathological irrationality and bounded rationality

Why is autism economically rational?
ByRiccardo Viale

part IV|45 pages

Embodied bounded rationality

chapter 23|14 pages

Embodied bounded rationality

ByVittorio Gallese, Antonio Mastrogiorgio, Enrico Petracca, Riccardo Viale

chapter 24|7 pages

Extending the bounded rationality framework

Bounded-resource models in biology
ByChristopher Cherniak

chapter 25|11 pages

How rationality is bounded by the brain

ByPaul Thagard

chapter 26|11 pages

Building a new rationality from the new cognitive neuroscience

ByColin H. McCubbins, Mathew D. McCubbins, Mark Turner

part V|85 pages

Homo Oeconomicus Bundatus

chapter 27|14 pages

Modeling Bounded Rationality in Economic Theory

Four examples
ByAriel Rubinstein

chapter 28|11 pages

Bounded rationality, satisficing and the evolution of economic thought

Diverse concepts
ByClement A. Tisdell

chapter 29|11 pages

Beyond economists' armchairs

The rise of procedural economics
ByShabnam Mousavi, Nicolaus Tideman

chapter 30|12 pages

Bounded rationality and expectations in economics

ByIgnazio Visco, Giordano Zevi

chapter 31|13 pages

Less is more for Bayesians, too

ByGregory Wheeler

chapter 32|8 pages

Bounded rationality as the cognitive basis for evolutionary economics

ByRichard R. Nelson

chapter 33|14 pages

Beyond “bounded rationality”

Behaviours and learning in complex evolving worlds
ByGiovanni Dosi, Marco Faillo, Luigi Marengo

part VI|54 pages

Cognitive organization

chapter 34|13 pages

Bounded rationality and organizational decision making

ByMassimo Egidi, Giacomo Sillari

chapter 35|13 pages

Attention and organizations

ByInga Jonaityte, Massimo Warglien

chapter 36|13 pages

The bounded rationality of groups and teams

ByTorsten Reimer, Hayden Barber, Kirstin Dolick

chapter 37|13 pages

Cognitive biases and debiasing in intelligence analysis

ByIan K. Belton, Mandeep K. Dhami

part VII|89 pages

Behavioral public policies

chapter 38|7 pages

“Better off, as judged by themselves”

Bounded rationality and nudging
ByCass R. Sunstein

chapter 39|8 pages

An alternative behavioural public policy

ByAdam Oliver

chapter 40|19 pages

Against nudging

Simon-inspired behavioral law and economics founded on ecological rationality
ByNathan Berg

chapter 41|13 pages

Bounded rationality in political science

ByZachary A. McGee, Brooke N. Shannon, Bryan D. Jones

chapter 42|15 pages

Layering, expanding, and visualizing

Lessons learned from three “process boosts” in action
ByValentina Ferretti

chapter 43|12 pages

Cognitive and affective consequences of information and choice overload

ByElena Reutskaja, Sheena Iyengar, Barbara Fasolo, Raffaella Misuraca

chapter 44|13 pages

How much choice is “good enough”?

Moderators of information and choice overload
ByRaffaella Misuraca, Elena Reutskaja, Barbara Fasolo, Sheena Iyengar