Monday, July 13, 2009

Simoleon Sense » Blog Archive » Understanding Bounded Rationality

Simoleon Sense continues to do an amaizing job giving us lessons in Behavioral Finance. Good stuff!

Simoleon Sense » Blog Archive » Understanding Bounded Rationality:
"Findings from behavioral organization theory, behavioral decision theory, survey research, and experimental economics leave no doubt about the failure of rational choice as a descriptive model of human behavior. But this does not mean that people and their politics are irrational. Bounded rationality asserts that decision makers are intendedly rational; that is, they are goal oriented and adaptive, but because of human cognitive and emotional architecture, they sometimes fail,occasionally in important decisions."

1 comment:

Miguel Barbosa said...

Dear Professor,

Thank you for the kind comments. I like the new website layout.

Best Regards,
Miguel Barbosa