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Two cheers for bounded rationality

Published online by Cambridge University Press:  09 April 2001

Raanan Lipshitz
Affiliation:
Department of Psychology, University of Haifa, Haifa, Israel 31905 raanan@psy.haifa.ac.il

Abstract

Replacing logical coherence by effectiveness as criteria of rationality, Gigerenzer et al. show that simple heuristics can outperform comprehensive procedures (e.g., regression analysis) that overload human limited information processing capacity. Although their work casts long overdue doubt on the normative status of the Rational Choice Paradigm, their methodology leaves open its relevance as to how decisions are actually made.

Type
Open Peer Commentary
Copyright
© 2000 Cambridge University Press

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