Bounded rationality

Tshilidzi Marwala, Evan Hurwitz

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

Rational decision making involves using information which is almost always imperfect and incomplete, together with some intelligent machine, which if it is a human being is inconsistent in making a decision that maximizes utility. Since the world is not perfect and decisions are made irrespective of the fact that the information to be used is incomplete and imperfect, these decisions are rationally limited (bounded). Recent advances in artificial intelligence and the continual improvement of computer processing power due to Moore’s law have implications for the theory of bounded rationality. These advances expand the bounds within which a rational decision making process is exercised and, thereby, increases the probability of making rational decisions.

Original languageEnglish
Title of host publicationAdvanced Information and Knowledge Processing
PublisherSpringer London
Pages41-50
Number of pages10
Edition9783319661032
DOIs
Publication statusPublished - 2017

Publication series

NameAdvanced Information and Knowledge Processing
Number9783319661032
ISSN (Print)1610-3947
ISSN (Electronic)2197-8441

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems
  • Information Systems and Management
  • Artificial Intelligence

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