LECTURE 7 NOTES Flashcards
1
Q
The Concept of Perfect Rationality
A
Rationality: based on reason or logic
The logic of perfect rationality
using if…then…and…optimization rules
- if these conditions are satisfied, this event/outcome will occur
- identify the optimal event/outcome
2
Q
Choice
A
A selection made between two or more alternatives.
3
Q
HERBERT SIMON: INTRODUCTION TO CONCEPTS AND THE LANGUAGE OF RATIONALITY
A
*Simon, H. A. (1972). Theories of bounded rationality. Decision and Organization, 1, 161– 176
4
Q
A
